Fintech in India is undergoing a drastic transformation with the increasing use of smartphones and the growth of technologies like the Internet of things. With IT, Blockchain, and Artificial Intelligence, Fintech is all set to create a new world of possibilities for daily consumers in 2020.
Learn more about the top 5 startup predictions in India for 2020.
With over 240 million smartphones and more than 300 million overall internet users, India is on the road to becoming one of the largest digital economies in the world.
Uber sets up fintech team in Hyderabad.
In October, Uber had announced the launch of Uber Money, an in-house team working on financial products and technologies that aim to support its riders and drivers.https://t.co/5Pq8hDoeQB via @LiveMint
— India FinTech Forum (@India_Fintech) February 13, 2020
Let’s take a look at some critical areas where Fintech will play a key role in 2020.
7 Important Areas for Fintech in India
1. Mass Expansion of Insurance Services
With the help of innovative technologies and disruptive ideas, insurance services will penetrate deeper into rural areas as well as reach the masses in 2020. To attract more people, insurance companies need to have transparent pricing, and their services must be accessible through digital mediums. Insurance providers have recognized the trend. They are now coming up with new plans that can be easily purchased online with a few clicks and have affordable premiums. These short-term plans are already quite popular across the world and are witnessing high adoption rates in India too.
2. Fintech Will Revolutionize the Education Sector.
India’s education market will touch the $180 billion mark by 2020 – making it one of the most important markets for Fintech as the demand for high-quality education has been on the rise for quite some time. Affordable payment solutions, education loans with lower interest rates, and the increasing availability of international scholarships have made education a promising sector for new Fintech technologies.
3. Disruptive Changes in the Lending Industry
Growth of fintech technologies in lending has significantly simplified the procedures for ordinary consumers and allowed for faster processing, easy documentation, and customized services. Using Fintech technologies, alternative methods for availing loans are being devised for a vast majority of the population without bank accounts.
4. Reduction in Frauds
2020 will see an increased adoption of effective risk management and fraud detection techniques. Technologies such real-time monitoring, behavioral biometrics, and multi-layer authentication will go a long way in reducing the risk that comes with the increasing popularity of fintech technologies.
5. The Rise in B2B Fintech startups
When it comes to profitably, customer service, and scalability, B2B Fintech startups are far ahead of B2C businesses. This area will see further growth, especially for startups serving business requirements and niche investors. The increasing penetration of digital technologies in Fintech has resulted in better customer engagement, the rapid growth of cloud technologies for payment solutions, and hassle-free end-to-end user experience.
Learn more about the startups that will boom in 2020.
6. Expect More Collaborations
The collaboration between Fintech companies and banks has seen a growing trend in recent years. According to a McKinsey report, around 80% of banks and other financial institutions have partnered with Fintech firms to incorporate cutting Innovations in their services.
Learn about the biggest startups acquisitions of last year.
7. Rise of Blockchain technologies
Not only has Blockchain technology enabled Fintech companies to optimize their costs by up to 80%, but it has also brought transparency and a significant reduction in risk and frauds. Some of the most significant benefits of Blockchain in Fintech are automated KYC documentation, crowdfunding, cross border payment, electronic notary systems, and data protection.
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