Fintech empowers India’s youth – people matter
With the rise of technology-driven startups, Fintech has rapidly grown and transformed India. Many market-specific challenges related to payments, security and customer experience have now been solved through ground-breaking technology.
Banks and other financial institutions are busy innovating to eliminate inefficiencies and improve the customer experience with new ideas and innovations.
And why shouldn’t they?
According to Indbiz, India is home to a fifth of the world’s youth demographic, this population advantage could play a crucial role in achieving the country’s ambitious goal of becoming a $5 trillion economy.
Today, innovations are based on what our youth want, not what they need. The younger generation wants better working conditions and flexible financial services that are in line with their long-term and immediate goals.
Young India and Technology
Compared to previous generations, young people are very friendly with technology. Their early exposure to and experience of a world through technology affects how they interact with each other and how they prefer to interact with financial services provided by neobanks, banks or other service providers.
According to research conducted by YouGov, 49% of Indians are early technology adopters and are eager to buy new products and adopt new technology as well.
The early adopters in India are comfortable taking risks, want to use a product before it goes on sale and want to pay for their luxury needs.
During the pandemic, the use of digital devices increased among young people. They relied on technology to meet their basic needs during the emergency, while non-tech-savvy users struggled.
Research conducted by Lenovo says that 92% of Indian respondents of all ages say they feel more comfortable with their tech capabilities post-Covid-19 and appreciate what it offers.
Affordable internet and easy access to mobile phones are also a prerequisite for ensuring young India’s digital financial inclusion. The presence of technology in people’s lives will only push financial service providers to think and create young products.
Drivers of the fintech revolution in India
India is home to over 2,100 fintech companies and 21 fintech unicorns. We have the highest fintech adoption rate in the world. According to NITI Aayog, the Indian fintech industry has a total funding of over $27.6 billion and is expected to be valued at over $150 billion by 2025.
Fintech companies partner with banks to provide tailored solutions for evolving needs of technology-driven young India.
Digital payments have become a way of life. The widespread acceptance of apps like Google Pay and PhonePe by traditional brick-and-mortar businesses and vendors is proof of growing digital momentum in India.
There are many favorable conditions to sustain this growth. The young tech-savvy demographic in India is willing to part with cash and embrace digital innovation from Fintech companies.
Digital natives – millennials and Gen-Z, as they say, prefer an experiential and ambitious lifestyle. They want everything. They want it now.
The NOW culture is responsible for creating the ‘Shop Now And Pay Later’ movement leading to an increase in demand for instant credit.
By providing credit access to people without credit cards, fintech companies promote financial inclusion. Unlike banks, fintech companies cater to the young population by further providing quick access to money.
The younger generation demands faster, better, safer and more feasible financial services and Indian fintech companies are providing the solutions to meet their needs. Real-time payments, fast loan disbursement, online insurance and lending have become easier because the new ecosystem is digitally driven.
The way forward
Ultimately, the goal remains the same – empowering youth to drive their financial journeys. To make India a completely cashless economy, it is necessary to spread awareness and educate people about the importance of technology.
And to really succeed, a holy triad between the bank, fintech companies and the government should be formed to ensure digital freedom.
