A blessing for financial revolution!

In recent years, we have seen the emergence of many Fintech startups in India. Financial services have gravitated towards technology-driven configurations to bring convenience and ease to key areas such as banking, payments and lending services.

Today, India tops the charts as the fastest growing Fintech market in the world. As per the reports, the Fintech industry market size in India was $50 billion in 2021 and is estimated to be nearly $150 billion by 2025.

It is safe to say that Fintechs or new players in the financial landscape are driving rapid changes in the financial sector and beyond. Digitization has a big role to play here. Traditional financial methods are being replaced

due to the massive use of digital Fintech solutions that push power into the hands of users and remove the hassle of the ancient way of banking. With technology taking over all aspects of our lifestyles, Fintechs are paving the way forward with innovative digital solutions.

The impact of the digital revolution on the Fintech sector In recent times, the emergence of digital solutions in the Fintech sector has contributed to the reinvention of business models and led to a significant change in the competitive environment in the financial industry.

Today, if you take a look at the financial landscape in India, the combined power of data and the digital revolution has transformed the financial system to be more responsible and sustainable. We saw a surge in digital adoption during the pandemic, putting India on the world stage as a pioneer of the Fintech revolution.

Digital Fintech solutions have also become the key driver of credit disbursement via end-to-end digital platforms such as CredAble. This, in turn, has resulted in ground-level penetration of financial products and services to the underserved sections of society, such as SMEs that have been struggling with liquidity crunches and funding problems. What digital solutions have brought to the Fintech sector is greater transparency, robust interfaces and multilingual options that have led to an expansion of the user base across the country. While Fintech firms help both businesses and individuals, it is important that they do not compromise on security while rolling out innovative digital solutions.

5 central Fintech digital solutions

Fintechs are game changers that have strengthened financial inclusion and bridged the funding gap with many innovative solutions such as:

1. Digital banking:

Digital banks have flooded the industry, giving traditional banks stiff competition. Unlike their traditional counterparts, digital banks do not have a physical presence, but operate with an end-to-end digital interface.

2. Buy Now Pay Later (BNPL) financing:

There has been an exponential increase in the demand for small ticket loans, in other words BNPL. With large sections of society recovering from the financial distress caused by the pandemic, customers today want the freedom to avail of purse-sized loans. Fintechs give users the advantage of splitting their purchase transactions into smaller installments with the BNPL solution.

3. Digital lending:

The unprecedented economic implications of the pandemic have changed the lending landscape as we know it. With increased uncertainties reinforcing risk perceptions, Fintechs are improving access to capital with digital lending solutions. The digital infrastructure and faster underwriting services offered by Fintech players are helping MSMEs to come out of the financial crisis they are struggling with. With many financing options and innovative solutions lined up, one thing is certain, the Fintech industry is redefining the lending space like never before.

4. Payment gateways:

The way to pay and get paid has changed over the years. Today, real-time payments have become the expectation, and Fintechs that are able to meet their customers at the intersection of convenience and security are

lead the way! This explains the increasing use of payment gateways, especially across e-commerce sites that have grown in prominence in recent years. Payment gateways can be easily integrated into merchants’ websites, allowing customers to make payments using a variety of options such as debit and credit cards, digital wallets, etc. 5. Digital Wallets

With the introduction of digital wallets, paper money is slowly but surely losing its prominence. Digital wallets have now become a hit for both online and offline transactions where users can transfer money virtually with ease.

Summary

The rise of digital technologies has certainly been a boon to the Fintech industry which is driving the growth of the Indian economy. These digital Fintech solutions are well integrated and provide a greater impetus to the growth of financial services in the country. Those Fintechs that leverage the latest technological advances to create value and develop innovative offerings will stay ahead of the game and reap the biggest rewards in the years to come.

There is no doubt that technological advances are the bedrock of the Fintech sector. Digital solutions will continue to drive disruptive business models within financial services and rewrite the rules in the financial world.

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