FinTech sector seeks more digital push

FinTech sector seeks more digital push

FinTech sector seeks more digital push

If  there was one sector that benefited the most post demonetisation, then it would be FinTech.  

The industry witnessed consistent growth in the last fiscal year and many FinTech startups started their operations, with various digital and financial services.

The government's digital push, UPI and Aadhaar Pay  have encouraged people to adapt digital platforms.  Ahead of Budget on February 1, there are various expectations from the FinTech industry.

Ravi B Goyal, Chairman and Managing Director of AGS Transact Technologies Limited,  a leading provider of end-to-end payment solutions, cash still co-exist along with increased push towards digitsation.

"As cash continues to be the preferred mode for transactions, especially in semi-rural and rural areas, we strongly believe that the government's pro-business policies will usher in a new era of prosperity providing stimulus to cash and digital payments alike. The forthcoming budget should announce measures to upgrade digital infrastructure, especially with regards to the protection of data stored online so that consumer confidence is enhanced," said Goyal.

According to Nasscom, the  Indian FinTech software market is forecasted to touch
$2.4 billion by 2020 from a current  $1.2 billion.

A joint publication by KPMG in India and Nasscom 10,000 Startups, 'Fintech in India', the transaction value for the Indian FinTech sector was estimated to be approximately $33 billion in 2016 and is forecasted to reach $73 billion in 2020 growing at a five-year CAGR of 22%.

 A digital finance company, Capital Float, hopes the government will continue to push digitsation of financial services and encourage consumers to use digital platforms for transactions.  

Gaurav Hinduja, Co-Founder of Capital Float said, one area of focus should be reducing the cost of capital for the MSMEs by improving lenders' access to low cost funding sources such as MUDRA and SIDBI and relaxing securitsation norms.

Bipin Preet Singh, Founder and CEO of MobiKwik said the Budget must reduce corporate tax for startups and companies promoting digital payments ecosystem. "At present, the corporate tax is 35%. The Budget should also announce sops for FinTech companies providing data protection. Also, people in urban and rural areas should be able to easily access financial services like loans and investment products on their smartphones," Singh said.