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Fintech Start Ups | What Is The Future Of Fintech In India ?

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Financial technology, or Fintech for short, is a catchall word for any innovation in the realm of finance that seeks to streamline or otherwise enhance the way financial services are provided to consumers. The retail banking industry, as well as the academic world, the investment management industry, the non profit sector, and fundraising are now all included in the realm of Fintech. Using apps and algorithms on mobile devices and desktop computers, it facilitates improved financial management for consumers and companies alike.
 

  • Because of this transformation, the emphasis is now on the end-users of the service. There is hardly any part of the financial sector that has not been affected by Fintech firms over the past several years.
  • Mortgage and small business loan applications, as well as wire transfers between financial institutions, used to need physical visits to a financial institution as recently as the last decade.
     
  • Because of Fintech, people no longer need to physically visit a bank in order to make financial transactions like investing, borrowing, saving, and transferring money.
     

What precisely does “Fintech” stand for?

  • When referring to software that facilitates financial transactions, such as internet banking, mobile payment apps, or crypto currency exchanges, the word “Fintech” is commonly used.
     
  • As a broad term, Fintech covers a wide range of technologies with the overarching goals of disrupting the financial services industry and providing innovative alternatives to how individuals and corporations manage their money.

Top Fintech Companies in India 2022

  • Prior to the development of financial technology, or Fintech, which is now an integral element of economies worldwide, all financial transactions had to be recorded on paper because it was viewed as the most secure medium. In contrast, as technology has advanced; the internet has become the medium of choice for conducting monetary exchanges.
     
  • A financial technology industry consists of businesses that apply innovation in information and communication to the financial sector.
     
  • Most people use them to make mobile payments, receive insurance, buy and sell stocks online, manage their finances, get loans and credit online, and do a variety of other things.

     
  • The traditional methods utilized in the financial services sector are being challenged by new market entrants, particularly those with an emphasis on technology.

     

  • Cred was established by FreeCharge creator Kunal Shah. For a free credit check through Experian, CRIF, and Cibil, the app needs your phone number. The application is designed to facilitate the payment of credit card bills and provide incentives for prompt payment. 
     
  • Paytm is not only an online payment platform, but also an e-commerce powerhouse. Paytm operates independently. Paytm was established by Vijay Shekhar Sharma, who also serves as the company’s CEO. 
     
  • Paytm has purchased 11 firms since its 2010 start, including Nearbuy, Insider.in, and Edukart. Established in 2010, it has been around for a while. The Paytm headquarters are located in Noida, Uttar Pradesh, making it the most prominent digital wallet firm in India.
     
  • Their most popular offering is the PayTM mobile wallet, which is utilised by tens of millions of people in India. It is said that Paytm made $118 Mn in 2017-18 and employed over 9000 people.
     
  • Mobikwik is a payment service that facilitates transactions between buyers and sellers using mobile devices. Upasana Taku and Bipin Preet Singh founded Mobikwik. Since its inception in 2009, Mobikwik has successfully completed eight investment rounds, bringing in a total of USD 118 million. Bipin Preet Singh is Mobikwik’s CEO.
     
  • Gurgaon, Haryana, India is home to its headquarters. The annual sales for Mobikwik is $12 Mn, and the company employs more than 550 people (2017-8). In 2009, it was established as such.
     
  • It’s important to note that Mobikwik is a privately held firm.
     

How have Fintech Investments Fared in India?

Specifically, digital banking received the lion’s share of funding because of India’s novel model, which permits digital banks to primarily function as SaaS providers with regulatory accountability as bank partners. 

  • The government of India banned elevated banknotes in late 2016 in response to the breakout of the Covid-19 pandemic, which coincided with the intensification of a drive toward digital payment systems and the proliferation of financial technology.
     
  • The digital payment business in India is expanding rapidly, but the country is still working to expand its financial safety net. 

     
  • According to research conducted by Credit Suisse over the course of the last decade, Indian financial technology companies have garnered close to ten billion dollars’ worth of equity capital funding.
     
  • According to research conducted by Credit Suisse over the course of the last decade, Indian financial technology companies have garnered close to ten billion dollars’ worth of equity capital funding.
     
  • KPMG’s Pulse of Fintech reports that India has received over $2 billion in Fintech investment so far in 2021, which is very close to matching the amount it received in all of 2020.
     

Is India home to any “Unicorns” in the Fintech industry?

  • Twenty-four companies in India have achieved the “unicorn” classification in just the first eight months of this year. 

     
  • India has been able to accept innovative solutions more quickly than its Western counterparts because it hasn’t had to deal with the same physical banking infrastructure that has slowed down adoption in the West. 
     
  • While India has played a significant role in the growth of Fintech unicorns, similar phenomenon has been seen in many other nations around the world.
     

(Note: This site is solely dedicated to educational purposes and does not promote or provide any products or services. Be sure to get advice from professionals before making any major financial moves. The aforementioned details were compiled from a wide variety of online and offline resources. The views expressed on this website are those of the streetofinvestment.com alone.)

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