Fintech, as a term, has changed meanings over the past decade. Defined only by the back-end technology at a time, today, Fintech includes all technological innovations in consumer & finance sectors.
At present in India, the financial sector is going through what may be chalked up as a mini-revolution in hindsight. With a moderately successful demonetization episode followed by the efforts to switch to a cashless economy ruled by digital transactions, the Indian Fintech space has grown to a position of improved significance.
Look at these few changes that 2017 may introduce around the Fintech space in India, given the changing economic scene in the country.
- Innovations Related to Digital Payment Systems
Demonetization pushed the already existing yet seldom used digital transactions into a new zone where it became an object of necessity and comfort. A new generation of applications supporting the same came out.
The ecosystem of online transactions is now more productive, inclusive, faster, and easier to use. However, a single digital wallet or operating system is soon to be a thing of the past.
Start-ups in 2017 could be seen trying to work with the consumers, seeking their imagination to improve the service, and introducing innovations to solve the niche and precise issues of digital payment.
- Blockchain Support
Cryptocurrency and Blockchain technology have been buzzwords for a few years now. As of now, Blockchain looks like the newest toy in the class, one that has numerous applications, incredible prospects and promises, and is primed for high acceptance.
World Economic Forum has reported an over 80 percent of banks that are willing to and working towards beginning one or the other kind of Blockchain project by 2017. In India, as RBI is considering using Blockchain tech to mitigate cheque fraud, over 90 central banks want in on the tech as well.
Blockchain technology offers operational simplicity. It could help reduce risk, settlement time, and fraud. It could contribute to improving capital and liquidity. Since the potential is immense, 2017 could see many innovations that use this technology.
- The Rise of Cryptocurrency
There has been quite a ruckus in India about the security concerns, especially in the financial sectors. Quite a few cyber-attacks in the past year, while not directed at the online transactional division, gave clear warnings regarding the stability of the same.
Cryptocurrency offers immunity from many prominent security concerns that surround the modern digital payment modes prevalent in India.
Bitcoins, an example of cryptocurrency, was seen attracting savings and investment enthusiast in the first quarter of 2017. However, it is a long way from constructing its market in the Indian subcontinent.
- Newer Lending Models
Financial inclusions and the availability of loan services to all, as prevails in the traditional banks, are riddled with loopholes. Fintech enterprises have worked to deal with these.
2017 can bring new lending models to the market via the Fintech companies. The reason behind it is RBI’s changing perspective towards the sector and its relaxing reservations towards it. The idea of a democratic financial service industry and exponential growth also aid the evolution of this scenario.
It Could Be an Exciting Year for Fintech Sector
The forecasts are numerous. You just read four, and the industry is brimming with hundred other ideas about how Fintech will carve a whole new space for its foundations this year. It will sure be exciting to see how these forecasts get manifested, evolve, or change into something entirely different than what is anticipated at present.
LSI: consumer & finance sectors, Indian Fintech space, cryptocurrency Blockchain technology, Fintech enterprises, Fintech companies, financial service industry, Blockchain technology.
