It looks like the Digital India Movement and related initiatives like Aadhaar and Jan Dhan Yojana among others have finally yielded results. India is now almost at par with China in its Fintech adoption rate. Currently, India boasts of a 52% adoption rate (as opposed to China’s 69%).
The bulk of the credit goes to startups offering quick financial solutions. Startups in nascent stage might have lacked data to carry out solution testing at a large scale. This is not the case anymore as can be seen from more fin-tech collaborations in the last 5 years.
Making budding entrepreneurs aware about fin-tech regulations can ensure credibility and ease of operation. It was in 2008 when Fintech showed signs of great potential. A decade later in 2018, Fintech sectors that have flourished have become reg-techs that capitalise on regulations by simplifying them for enterprises and incumbents.
Personal finance services, for instance, enjoy favourable conditions currently and find their plans and proposals well-suited in the payment segment. Collaborations between banks and Fintech companies have already proved fruitful in the recent past and can result in further innovation.
Blockchain, machine learning and artificial intelligence are some emerging forces that are rapidly transforming the Fintech landscape. As technology continues to evolve and integrate with financial services, further issues will crop up. Ride through the economic changes will throw light on the gaps in their business models. They will then work on sustainability and viability.
Banks now seek high impact cerebral and predictive AI model as opposed to generic low processes deployed earlier. Digital payments are essentially more transparent, meaning more credibility to governance. 2019 will witness further evolving of the industry – primary focus being data security.