Fintechs Revolutionizing India with Doorstep Digital Banking – says Rohit Kumar, CEO and Founder of XPay Life.
Entry of Fintechs in Digital Banking
A young India! An enthusiastic population that has jumped on the digitization bandwagon rather very optimistically and is quite literally propelling the country ahead of the world. The fintech sector saw a huge opportunity in this and realized that the country was now ready to reach out to the underbanked and unbanked parts of the country. The activation of the trinity plan of Aadhar cards, along with Jan Dhan Yojana and mobile phones kick started the digitization process. There have been great steps taken to increase mobile penetration and revised data infrastructure and low costs of data and mobile phones have helped the government’s goal of digitization.
Technology creates opportunities but, in the past, it has also increased the divide between rural and urban India. But not anymore! Today, financial inclusion is one mandate that is driving the Fintech sector to move into the untapped sector, with untapped target audiences and mobile phones in hand. Financial inclusion is the mantra of a developed nation and we are getting there. There are numbers to back the growth. With a whopping 750 mn smartphone users in the country, the numbers are expected to reach 1 billion by 2026. That’s a massive potential for all kinds of growth.
Digitization has been the focus of the government. Increased internet penetration and smartphone adoption, improved accessibility and cheap broadband connectivity are some of the factors that are enabling this growth and development.
The PM’s Digital India movement and Bharat Net programs are helping Indian banks to reach out to hitherto inaccessible areas via the digital route, enabling covering more and more populations not covered by banks before. Private companies are stepping in where the government finds it difficult to reach out and scaling up digital infrastructure. Fintech sectors are today helping boost agriculture, healthcare, education, etc. Within and around small towns.
The growth of Fintechs has been one of the most empowering developments in the country. by promoting the growth of MSMEs in the country, equipped with data analytics, Fintechs are challenging traditional banking systems and making them easier.
The introduction of UPI and innovative payment options have fueled the growth of digital payments in India. Penetration of UPI, payments banks, mobile ATMs, etc. Into the personal banking environment has helped in the evolution of the Indian digital landscape and the modernization of rural India.
Fintechs Revolutionizing India with Doorstep Digital Banking
Some Fintech companies have understood that doorstep banking is the key to financial inclusion and that any kind of financial independence can be achieved only by digital literacy. District Cooperative Central Banks (DCCBs) get sanctions from National Bank for Agriculture and Rural Development (NABARD) and launch programs such as the mobile van, which has been very popular with the farmer community, who till now had been a marginalized and underserved group. The country is excited to go cashless, adopt technology and use remote services. Banks are collaborating with Fintech start-ups to tap underserved people in the country, enable digital offerings and provide a seamless and digital experience to everyone in the country. With a tech-savvy customer base, India is in the cusp of a dynamic change and we are witnesses to that. It may be slow, and it may look difficult at times, but the world is watching. As digitization matures in our country, we are only headed toward better days.