Financial Liberation: FinTech Startups Give India a Shot at Financial Stability
- Written by TechXO Team
- Category: Fintech
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FinTech has provided multiple consumers with a more personalized experience with regards to handling their finances. Consumers who prefer modern, more efficient handling of their finances can finally rest easy as more and more FinTech companies rise up and grant them what they are looking for. However, the one that benefited the most out of the rise of Financial Technology is not one person, but an entire country.
India has constantly struggled financially. Always known as a “poor” country, its GDP remains low and its people remain having difficulty with how to go with their day to day lives. Even though they have similar political structures as the United States, India has still found difficulty overcoming the identity it gained during its colonization. Given this, its people have also found difficulty trying to elevate themselves from their social status.
Culture and politics
However, India’s financial difficulty transcends cultural and political aspects. Even its financial sector is not something to behold It is extremely difficult for individuals to invest in traditional financial methods since they do not earn enough to meet the standards of traditional banking. Only the elite have access to securing their finances and investing in things, while the poor have no access to these things at all. The people in India focus more on getting jobs instead of looking for quality work. For them, as long as you have a job, even one as simple as selling street food, you will be okay.
India’s trade and economy are also in shambles, with no real export to sell to other countries. Moreover, India does not really attract many investors, making it difficult for their government to find ways to improve the lives of its people. Throughout the years, India has found difficulty in sustaining itself as a country, dragging down its people with it.
How FinTech fits into the picture
This is where FinTech can help create solutions for India. By giving unbanked users a fast, safe, and easy way to conduct transactions, FinTech provides them with something that they have been deprived of for so long: financial inclusion. Not only that, but the FinTech market in India is also easier to invest in, with Indian consumers favoring either merchant-oriented systems or user-oriented systems. Given this balanced state of the FinTech market in India, foreign investors have the capability to access both markets of India without having to choose one or the other.
By becoming a digital economy, India now has an enticing offer to foreign investors. FinTech startups within India have the capability to really understand the needs of their user base and apply it in the creation of their systems. This means that Indian FinTech companies allow access to financial transactions and stability to those who cannot afford traditional means. Furthermore, the concept of becoming a digital economy means that India has access to other corporations that exist on that field as well, this makes it easier for India to establish itself globally, as well as being able to help the people of India gain financial stability
FinTech’s contributions to India may seem small, given that it only allows transactions to happen. However, considering India’s history in having difficulty with finance in and of itself, what FinTech offers is way more than what their government offers to them. It is only a matter of time before investors see the true value of India’s FinTech sector. With predictions saying that India’s FinTech sector will reach a value of $2.4 billion by 2020, it will not be long until we see the dawn of a new India upon us.