The ongoing fintech revolution has brought consumers, startups, and financial institutions on a single platform. Thanks to this digital platform, enabled by many innovative technical solutions, we know have more peer-to-peer transaction than ever before.
According to India Fintech Report 2020, released by Medici, innovations in Indian fintech started with digital payment startups. Soon after, the sector witnessed more innovations, one followed by another in quick succession. Digital lending, insuretech startups and wealth management are some of the few solutions, mentioned in the report.
Thanks to these innovations, Indian fintech sector has been transformed into Fintech 2.0 where different models are competing with each other to create new segments and new use cases.
Global fintech research and innovation platform Medici have mentioned following emerging segments in its report:
Business banking experiences will be completely different thanks to Neobanks. Efforts are on to address many problems that are affecting the performance of financial sector right now. Customers will get fully digitized account. They will not be charged for debit card use. Payments will be made instantly. There will be a personal finance advisory. Its other features include GST-compliant invoicing, and accounting integration.
Neobanking is set to take off, because existing fintech segment is getting overcrowded, and venture capital and private equity investors are losing interest in them. For them, neobanking is the next big thing.
Indian MSMEs have failed to benefit from the digital lending fintech. Since, MSMEs lack credit history, banks tend to ignore them, and prefer to serve more creditworthy segments.
Banks now have more data about small players. They know even the minutest details of MSME’s financial dealings ranging from transaction to social data. Technologies have made this possible. Hence, this sector is going to get more lending than the existing threshold of 10-15%.
Number of affluent Indians have increased significantly in recent years. Wealth management industry has prospered to take advantage of this situation. Technology has changed the face of investment advisory services. There are more low-cost solutions catering to a broader set of people.
The various technology platforms in these areas include robo-advisors, thematic investment, discount broking models, ecommerce firms, and digital wallets, offering investment products, goal-based investing in mutual funds, etc.