Fintech 2.0 in 2023: Can India unlock next level

FinTech has become such an integral part of the financial services ecosystem over the past few years, that every sector now uses FinTech services for day-to-day activities. With this boost in the Fintech sector, even traditional institutions are revamping their services with advanced technology to keep up with the growing FinTech sector. As part of FinTech’s larger picture, financial inclusion is one of its vital objectives. The FinTech industry has grown exponentially, and the wave of changes brought in by fintech has profoundly impacted financial inclusion and penetration. The advent of a variety of FinTech products in India has made it possible for people in the most remote areas to access financial services. It has also been beneficial since a country like India caters to a large population, so it requires advanced technology. FinTech revolution: Rise and growth India has unquestionably emerged as one of the fastest-growing FinTech hotspots in recent years thanks to one of the world’s fastest-growing economies. A variety of concepts, such as mobile banking, secure payment gateways, mobile wallets, and paperless lending, are already being implemented in India. The FinTech revolution has arrived. According to surveys, the Indian fintech industry currently has more than 20 unicorns. There are many payment options in India, such as the Unified Payments Interface (UPI). During July alone, it handled more than six billion transactions, the most since it was launched in 2016. The service provides instant authentication and authorization of money transfers. It is estimated that over five times as many UPI transactions are processed each month as there are mobile connections in India. In 2017, the National Payments Corporation of India (NPCI) reported UPI transactions exceeding Rs 10.62 billion. lakh crore in July. In just 6 years it has become one of the most used payment methods and will continue to grow. New ways of banking are also becoming popular as a result of FinTech, neobanks are one such example. Neobanks are another Fintech product that is transforming the way we bank, these banks work completely online with no physical presence. Neo Banks are essential in assisting SMEs to automate their accounting procedures, transmit and receive payments, and use their platform to access third-party banking and business services. Indian neo-banks have received a five-fold increase in funding in the past year, and by 2030, that number will rise to $215 billion. More than 12 Neo banks currently operate in India, including Jupiter, Fi Money, Razor Pay, Open Money, InstaPay, etc. According to industry estimates, In 2022, user penetration will be 0.7%, and by 2027, it is expected to reach 1.4%. FinTech 2.0 By 2030, it is anticipated that India’s fintech industry would have an output of $1 trillion and generate $200 billion in revenue. Fintech funding increased by three times in the previous year. A major contributor to this growth is also because of the government and its initiatives for the adaptation of technology. The development of increased financial inclusion in the nation has depended heavily on the India stack and the innovation of FinTechs. India will unlock to FinTech 2.0 in the next few years, The nation presents a great environment for a FinTech revolution due to a number of factors, including an innovation-driven startup scene, a highly favorable market, improved smartphone and internet penetration levels, a young population, and government-led attempts to promote the industry. Additionally, the Indian FinTech business has benefited greatly from the increased public awareness of financial technology. Furthermore, now FinTech companies are working on their cyber security issues, real-time errors, and other issues faced by customers while working on their applications and they’re working towards providing an even more seamless user experience. Digital financial empowerment Digital financial empowerment is now the government’s focus instead of digital financial inclusion. By means of Jan Dhan 2.0, gender-sensitive policies, PM SVAnidhi Scheme, eKYC, digital onboarding, and digital customer protection, this is being accomplished and fintech will help with this goal. With a significant shift towards a more equitable distribution of investment across sectors, there will be more growth in other sectors like Insurtech (insurance and technology), WealthTech (wealth management and technology), RegTech (regulatory technology), etc. There is scope for a lot of growth and opportunities in the coming years for the Fintech sector and this will lead to a FinTech driver ecosystem. The author is the Chief Executive Officer and the founder of Neofam, a neobanking platform Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.