In this article, we will discuss Significance of FinTech. So, let’s get started.
Significance of FinTech
- FinTechs are an essential part of the Indian financial ecosystem; though they have been around for decades, their importance is pronounced post demonetisation, with the Covid-19 pandemic further intensifying their significance.
- FinTech is redefining financial services for the common man and woman; the use of big data for small credit through smart analytics and algorithms has vastly expanded the pool of eligible borrowers in India.
- FinTech has brought down the cost of doing business drastically. The cost of a digital transaction like payments, credit assessment and fraud check is a fraction of the amount spent on physical processes.
- Fintech is breaking geographical barriers and shrinking the country into the palm of the hand. It is opening doors to a large number of underserved yet economically viable customers.
- Growth of FinTech in India: India is the global FinTech superpower with the highest FinTech adoption rate in the world. In 2020, India overtook China as Asia’s top FinTech market.
- As per the government of India estimates, the Indian FinTech ecosystem is expected to reach $150 billion by 2025 from its present level of $50 billion.