The Fintech industry in India is categorized into 4 major segments namely WealthTech, Payments, Lending, and InsureTech. The WealthTech Industry in India is witnessing the emergence of startups with innovative technologies and business models. Growing personal wealth, increased adoption of mobile & digital channels, reduced asymmetry of information between small & large financial institutions and investors, some of the factors propelling the industry forward. Digital payments have been the flag bearer of the Indian FinTech space. In 2010, India launched its first real-time payments systems ‘IMPS’ and introduced UPI in 2016. There are 375 Payment startups in the country. Mobile/digital wallets, gateways, POS/ mobile POS sub-segments account for over 50% of the payment startups in India. In 2020, online transactions grew by 80% in India as compared to 2019. India will contribute 2.2% to the world’s digital payments market by 2023, and the value of such transactions is expected to reach $12.4 tn globally by 2025.
In consumer credit, the urban population is likely to leverage FinTech lending services to avoid heavy documentation, and the rural population (which is new to credit) can benefit from alternative credit scoring mechanisms to stay away from loan sharks. The scope of IoT in Indian Insurance goes beyond telematics and customer risk assessment. Currently, there are 110+ InsureTech start-ups operating in India.
AI and robotics are the future of Fintech: The technologies have already come to active usage while developing financial products and services. The research conducted by the National Business Research Institute and Narrative Science says that 32% of providers have already been using Artificial Intelligence technologies like voice recognition, predictive analytics, logical reasoning, and others. Such statistics are predicted to increase beyond, encouraging more investment in robots and AI solutions.
Though the Fintech industry is one of the most densely regulated, almost every week we experience headlines connected with financial products cybercrimes. Such security risks will oblige governments to come up with new regulations and legislation on the national level. The future of Fintech and the banking industry lies in the implementation of agile technologies and strengthening data security policies. In the digital era, it becomes crucial to meet the demands of technology-savvy customers and keep up with technological progress to remain competitive.
Relevant companies, interested to learn more about Israel’s innovative technologies in FinTech solutions are invited to contact the Trade and Economic Department at the Israeli Consulate General in Bengaluru.
For further queries:
contact: Kavitha Saravanan,
Trade Officer, Trade and Economic Mission
Tel: +91-80-49406515. email@example.com
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