Fintech: Changing the Start-Up Landscape

Fintech is one of the prominent breeding grounds for the business innovation in the recent past. Scholastically called as financial technology, it has contributed to the start-up explosion significantly, across the world. The financial technology is likely to value its business at 300 billion pounds in Britain alone. The pace at which the Fintech is disrupting start-up scenario in India is also unrivaled.

The Indian Scenario

The start-up landscape in India was largely focused on developing e-commerce and technology related products before. Fintech was never considered as a game changer. However, the scope for fintech is huge and is never denied. The fintech startups have became talk of the town after the government declared demonetization and it was also fuelled by the changing trends in shopping of urban customers.

Making Life Easier

Earlier, one has to go to an agency to buy an insurance policy. Today, the agents and the bankers are replaced by the online portals. The number of people embracing digital payments, online banking, bill payments, etc., is consistently growing in India. This has created a huge room for the young innovators to launch their start-ups and offer their services to the customers. Subsequently, there is a huge rise in professionals with fin-tech background and professionals who opt for online finance courses.

Earlier, applying for the loan was a tedious job. Today, you can simply log on to the portals of Lending Kart or Vistar Finances, fill the particulars, and get a loan for your Small and Medium Scale Enterprises.

Third Party Vendors

There are scores of technology providers in India and abroad who are acting as the third party vendors to the banks and the financial agencies to create financial applications and online technological solutions.

Relying on Data

The most important aspect of the fintech solutions is data and they efficiently take advantage of data mining techniques. However, the fintech companies have the user data which helps the analysts understand the customer’s buying patterns. There is a huge scope for professionals with data analytics training in the fintech arena as well.
 

This data is the gold mine for any business and is likely to help the start-up industry evolve from innovation to understanding the market volatilities. This trend is likely to increase the impetus towards entrepreneurship in the country and ensure India’s position as one of the world’s fastest growing start-up economy.