In this modern era, everything is digitalisation starting from trade to financial services. Let us know in-depth knowledge about Fintech and how it useful for economic growth in India.
What is Fintech?
Fintech is nothing but a combination form of Financial and technology. It is one of the most emanate industry in which the technology used to improve financial activities. Fintech is a new application or process which provides an end-to-end process to people through the internet way. Fintech services are changing the economic growth around the world.
This fintech offers a huge range of services such as products, technologies and also business models which helps to change the financial service industry through cloud-based software. For example, everything starts from cashless payments to the crowdfunding platform to Robo- advisors lastly to virtual currencies.
How do Fintech services work?
Fintech is the integration of technology into offerings by which financial service companies work to improve their business service effectively which helps to retain the customer value and also to maintain the best customer relationship through these technologies.
These fintech work by using the technologies such as Blockchain, Smart contracts, Artificial Intelligence (AI), Biometrics and so forth.
This fintech not only used in big companies. Also, these technologies help Small and Medium Enterprises (SMEs) to run the business smartly. Let us see some of the advantages of using this fintech in SME’s.
- To run the business effectively – Through cloud-based software, it helps to interact with the customer and maintain a better relationship.
- Streamline operations – it is a combination of all aspects such as operations, HR, finance, Marketing etc into one effective software. ZOHO, ODOO, SAGE etc these are the best examples of cloud-based software.
- Makes accounting services smarter – With the help of Cloud-based software, traditional accounting change into a digital one which helps to manage and maintain huge different financial services efficiently.
To share small information that China and India are the leading countries that rank the highest place in fintech adoption. Nearly 87% of people using this technology for various purposes.
The top 5 Fintech startups in India are:
- Phone Pay,
- Lending Kart,
- Razorpay and
Future of Fintech services in India:
The future of Fintech in India will have growth in both the horizontal and vertical way. First, horizontally, it will progress to provide accessibility to a huge number of people. Second, through vertical way, it will see the emergence of highly involved financial technologies which provide the people to use new tools in their business which includes trade, invest, saving money etc. Lastly, these forms of financial technology will take India a step forward on its journey towards to higher standard level of economic growth.