The Fintech Industry
FinTech is a rapidly evolving segment of the financial services sector where tech-focused startups and other new market entrants are disrupting how the financial services industry traditionally operates. FinTech companies and market disruption are augmenting the competitive scenario each passing day.
According To PwC, India has experienced the emergence of numerous FinTech start-ups, accelerators and incubators over the last few years. India has everything going for it to establish itself as a global FinTech hub. With a large market of underserved/unserved customers, increasing mobile penetration, favorable demographics, an active start-up ecosystem and a large technology talent pool, India has a potent opportunity that is waiting to be seized in the FinTech space.
According to a report by Deloitte, Indian FinTech companies could address a few of the critical structural issues afflicting Indian financial services-increase outreach, improve customer experience, reduce operational friction, and foster adoption and usage of the digital channel. Legacy prone processes and higher operating cost models of incumbent banks and financial service providers will give digital FinTech companies an edge, as banks play catch-up with these more nimble and innovative start-ups. The opportunity for FinTech lies in expanding the market, shaping customer behavior, and effecting long term changes in the financial industry.