In this world of Industry 4.0, where digitization and automation have become the new normals in all sectors, the financial sector does not stand isolated. The right mix of technology in the financial area creates this bigger domain of fintech, creating a synergic effect. In this present scenario of COVID-19, consumer behavior has radically changed. This change comes as a foundation for the growth of fintech.
With the digital revolution taking a great upward push, the fintech sector has the potential to grow leaps and bounds. According to statistical reports, the fintech market, which had a value of 1.92 crores in 2019, is forecasted to be valued at 6.20 crores by 2025, within a span of just five years.
Though COVID19 left the economy for a toss, it had created a vast space for innovation in the fintech area. With the lockdowns setting in around March 2020, with social distancing and work from home becoming new norms, customers have largely shifted themselves to a digital world. Cashless and contactless transactions have gained wide acceptance in the minds of customers.
The Government of India has introduced several initiatives, including the launch of Unified Payment Interface (UPI) in the direction of centralized digital payment modes. Financial inclusion can also be ensured through such initiatives.
In this dynamic business environment, fintech companies can grow enormously by forming alliances with non-tech and non-digitized services. Forming partnerships with B2B and B2C, e-commerce can help in creating new business ideas and prospects.
Fintech does come with certain risks. Cybersecurity as well as the extent of consumer protection still remain questions to be answered. Frauds and scams have also emerged during this time of the pandemic, where several people had fallen victims to unauthorized mobile money lending applications. It is essential to address these issues to create a sense of confidence and trust among customers in going digital.
Positive advancements in this sector can be assured with adequate skill development and technical support. Even after the pandemic, many of the fintech companies are likely to continue. The future is going to be digital, fintech is to grow as years pass by.