Fintech. The word itself sounds foreign, dystopian – not a word in your everyday vocabulary. What we don’t realise is that fintech is already deeply ingrained in our current society, from digital currency, to crowd funding or even mobile payments – fintech is the backbone of the financial evolution. An amalgamation of financial and technology, fintech is revolutionizing the way we think and use money. So what is fintech?
Fintech covers the broad scope of digital payments, digital lending, insurance technology and wealth technology. Fintech incorporates technology to improve the accessibility and efficiency of financial services. Fintech allows consumers to better manage their financial obligations and operations, disrupting traditional finance providers to create a more inclusive, accessible model.
With 38% of Indian bank accounts inactive, there is evidence that a significant proportion of the population is not fully integrated into traditional methods of financial banking. Fintech is able to fill this gap by making financial services more accessible through the use of mobile phones. For those who don’t have access to traditional banking services or who aren’t able to obtain credit, Fintech provides an innovative solution by utilizing mobile phones as an alternative. It is estimated that over 800 million people in India have access to a mobile phone. Fintech capitalizes on widespread mobile phone usage to provide financial services, disrupting the traditional model of obtaining/storing money.
Paytm is an Indian fintech company that has infiltrated the Indian economy. Payments can be made through the application, no matter how large or small the sum. Along the streets, vibrant stalls are happily accepting Paytm as a form of payment, illustrating how inclusive innovation has changed the financial landscape in India. In bustling markets, each store would have a sign supporting Paytm transactions, depicting how widespread and successful Paytm is in India.
Fintech is an example of how technology can be used to generate solutions that would otherwise be unachievable. By adapting the way we utilize technology, we are able to improve the accessibility and inclusivity of finance in India. Machine learning, artificial intelligence, digital data are all changing the way we interact with and use money.
RISE Mumbai is a startup accelerator that created a micro-ecosystem of fintech startups, providing the resources and training they need to thrive. By encouraging the expansion of fintech, RISE is able to capitalize on groundbreaking technologies in the financial industry. RISE Mumbai had the perfect atmosphere for fintech startups to explore alternative solutions, pioneering the fintech revolution.
Fintech is not a dystopian concept. It is happening in countries like India, where they are paving the way for innovative payment and credit solutions, tailored to their country’s needs. The fintech revolution is upon us, and we need to learn how to embrace it.