India has developed more in recent years. Suppose you look at the record of India’s development in a decade. Then you’ll see how much change has happened. India is rapidly transforming from traditional transaction methods, like money orders, to online payments.
Fintech has improved the financial landscape in India. According to a report, almost 8800 crores of the transaction happened in FY 2022. Many Fintech App Development Company have developed apps for their clients, whether in the health sector, food, or travel. Every app now has an online payment option for buying various things or subscribing to more features.
What is Fintech?
Fintech is the abbreviation of Financial Technology, which refers to an organization or a firm competing with the traditional way of transaction with technology using artificial intelligence, machine learning, and blockchain technology. There are many apps like online payment apps, crypto apps, investment apps, and others.
In India, 2015 was the formative year. When so many fintech startups were taking place, PhonePe was the first Fintech app that enabled cross-platform payments. Now the top apps are Paytm and PhonePe in India. Every shop and transportation service has a Paytm or PhonePe QR scanner. India is now diving into Fintech. It has impacted the various aspects of the finances like loans, insurance policies, fund management, and many more. Let’s see the impact and how much it has affected.
Impact of Fintech and Digital Technologies in India
There have been many changes in the habit of fund management after the emergence of Fintech in India. There are best investment plans for people and many applications that help to plan people’s way of funding in an improved manner. Even many fintech companies help individuals by providing complete solutions for savings and investments. They also offer options to compare. Fintech applications help collect and leverage vast amounts of data secured because of blockchain technology, which will make it easy to design a management system for an individual to plan on investing their money into themself or their family.
Insurance services have become easy. You can have your plan, which has been easily customized through the organizations due to digital advancements. Also, you’ll have apps to help you purchase risk-free insurance. In addition, you will have straightforward claims processing and activation. IoT is also involved in insurance services. Some devices have sensors that will perform risk management for the company. If there are some irregularities, then it will alert the company and their customer.
Before moving further about how remittance transactions have become easy through Fintech, let’s know what remittance means.
Remittance is the fund migrants send to their home country when working abroad. Then, it was a highly complex process and time-consuming and found to be very expensive, and it charged too much tax to transfer many. Now the inbound and outbound transactions are straightforward and affordable. But it depends on the country according to their norms in terms of taxing.
New projects and new businesses or startups can do equity funding easily with the help of these digitally advanced technologies. It has made the process very easy to keep the details of every investor and how to divide the profit among the investors through this technology. It will help to manage the data more easily than before. To your knowledge, Equity funding is giving your share to the investor in exchange for cash investment. In this process, investors will also benefit from your business. India’s trending show Shark Tank is also based on these concepts. Where many entrepreneurs come and offer equity to the ‘sharks.’ That’s what investors are called in that show.
Payment has become very easy through online methods. Whether it comes to UPI transactions or net banking, it has become effortless to pay and receive money from anyone immediately. The paradigm is shifting from traditional transaction methods to the online Fintech industry. Many startups now approach the fintech app development company to build them an app with the implementation of the online payment method in their application. Taking cash from the ATM is now unnecessary as you can use UPI transactions to transact money to any merchant or your friends or family within seconds.
Now every private bank has opened its app. Nowadays, if you open a new account in a bank, they will also tell you to download their app. You can see that the app provides services like joining various schemes, and you can apply for a loan through the app only without going to the bank, which is easy and accessible. It is much better than traditional banking, which is very tiring and time-consuming.
Future of India in the Financial Landscape
There is a bright future for the fintech industry in India. The Fintech industry has been one of the fastest-growing sectors in the Indian economy. However, it will only be possible if more people have the internet and smartphones. People are rapidly switching from traditional banking ways to digital platforms. If the number of middle-class people keeps growing, then it must be possible that the demand for fintech services must increase, and many untapped Fintech will open.
Fintech is being revolutionized in India, and it will continue to do so. It has changed the financial landscape in India. Also, some of the tiring banking processes have been transformed into intelligent business processes. Some fintech companies will help you to build a fintech app that will help your business.Get associated with the top mobile app development company in India and build the best fintech app for your company.