Financial technology (Fintech), an industry that recently emerged in the Indian economy, is now set to change the way lending and borrowing, as we know it, is done. Banks, which have been the primary institutions for lending funds for over a century, are now up for competition from some 21st century entrepreneurs.
Banks enjoyed the advantage of wide reach, which allowed them to route money over distant locations. However, with the emergence of new and improved technology it is now possible for other players to enter into the business of money- lending and compete with the banks.
Technology has made the world a smaller place as never before and people are now for the first time looking to alternative ways to meet their need for funds. As per estimates, over 45% of the fintechs active in India are into payment services.
India launched its Startup India plan during this time last year, with a view to transforming the country into a fertile ground for new and innovative businesses and, in turn, boost the national economy. Since the launch of the plan, most of the businesses which came up are e-commerce and fintechs. Both the businesses have technology as their core.
Fintech in India
The fintech industry in India can be divided into 12 broad categories:
1. Alternative Funding
2. Banking Tech
3. Crowdfunding
4. Consumer Finance
5. Cryptocurrency
6. Enterprise Finance
7. Foreign Exchange
8. Insurance Tech
9. Investment Tech
10. Mobile Wallets
11. Payments
12. Software for Institutional Investor
Credit: Ameet Roy, moneylife.in
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