How technology is driving the growth of Fintech

While traditional banks have successfully achieved customer loyalty and successes over the years, nowadays customer experience plays a much more important role than anything else. And this is where fintech comes in. India is home to 20+ fintech unicorns and the fintech industry is expected to reach $1 trillion in throughput and $200 billion in revenue by 2030. Like any startup, fintech also needs technology, but they have a different kind of approach to it, due to the involvement of huge financial data.

According to Souparno Bagchi, COO, Balancehero India, the deep domain orientation of the fintech space and having a good understanding of regulatory expectations are fundamentally two things that are very different. “Any product that comes across deep domain orientation, be it from the aspect of safety, responsibility, regulation put together, if you don’t suck, it will be difficult to build a good product as a consumer
Looking for.”

Says Hardika Shah, Founder & CEO, Kinara Capital, “Regulator brings in control. But even though we are a fintech, we are building a newer version of the old school so that regulatory framework remains intact. One must understand that we want to work with the regulator.”

Amit Tyagi, CEO, Payworld opines, “If you’re a consumer technology startup, it’s you and
consumer by default. But in fintech, you work with regulators, other industry players and consumers.

If the head is not in the right place, the regulator ensures that there is no start
the business unless you have the basics sorted from a security and consumer perspective.”

But what about disruptive technologies like blockchain in fintech? Industry insiders say blockchain technologies with broader use cases will really boost the trust quotient in the sector. Sumit Chhazed, Co-Founder and CEO, OTO, says: “Fundamentally, there are three things for any technology to thrive, trust and transparency, making processes more efficient, reducing costs. In blockchain, the cost of driving the payment decision is lower. When it comes to assets, blockchain can provide real-time access to data.There is much more trust and transparency.

Fintech companies have made money accessible to everyone. Says Pallavi Shrivastave, Co-Founder and Director, Progcap, “There has been openness from the regulatory side to explore and allow fintech
experiment. Concus Chitresh Sharma, CEO & Co-Founder, Refyne “We take
financial well-being to the last mile. And when you do, you serve 93% of
audience that is not used to credit scores.

Another interesting aspect of the fintech industry is the payment system, its subset. An example of this is UPI. “It is here for several reasons – ease of payment from a customer’s point of view to zero MDR (merchant discount rates) for merchants,” says Krishnan Vishwantahan,
founder, CEO, Ring.