Cashless push helps FinTech expand its reach

Cashless push helps FinTech expand its reach

Over the last few years, FinTech has been gaining substantial attention from both startups and venture capitalists. Like 2015, 2016 too saw many new players entering the financial technology space, and gaining out of it.

Post-demonetisation, both FinTech companies and startups have emerged as clear winner, with more opportunities in the financial arena.

As per Nasscom, the global FinTech software and services sector is expected to boom as a $45-billion opportunity by 2020, growing at a CAGR of 7.1%.

Rubique CEO and Founder Manavjeet Singh said, “We are witnessing that the FinTech’s close association with payments is breaking away, and there has been growing awareness about FinTech lending.”

Rubique is an online marketplace for financial products. Singh said that due to a huge credit gap and an increasing mindset shift towards aspiration, the lending industry has huge potential.

The speed at which India’s FinTech landscape is growing is truly remarkable, said Creditseva CEO Satya Vishnubhotla, adding that the development of alternative lenders was one of the biggest stories of the years.“Combining patented technology with algorithms to make better lending decisions has shaken the banking industry.

Apart from bringing in transparency, it has made the process efficient and affordable for consumers. We witnessed banks warming up to online services in order to serve customers better. Greater collaboration from both sides was seen, whether in payments, insurance, or wealth management,” he said. Another interesting trend this year was the use of technology in the credit industry.

CreditMantri CEO and Co-founder Ranjit Punja said, “The financial services sector is facing a wave of digital disruption with a number of startups taking advantage of technology and data to change the way financial services are delivered. The JAM stack, demonetisation, smartphone penetration, newer financial institutions, etc. present attractive opportunities for this sector.”

Digital payments gain
When the concept of digital wallets was slowly catching up in the country, demonetisation came as a big boost for both mobile wallets and FinTech firms.

Loantap Co-Founder Satyam Kumar said, “A big thanks to the government’s cashless push, FinTech has climbed many notches on the popularity chart. None could have imagined people across social strata putting money in mobile wallets, when they are even worried about private banks.”

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