The pandemic brought a wave of change in consumer behavior across the planet. Unbanked consumers started opening digital accounts, transferring money, borrowing money, and shopping online within a few weeks. In other words, a huge portion of transactions that were previously conducted offline moved online, and fintech usage increased dramatically.

Consumer behavior

Our banking habits have changed, from standing in long queues at the bank to conducting our daily transactions on our smartphones. Digital penetration is apparent in how much time we spend on our smartphones. It has also changed the way we think. For businesses that are looking to stay competitive in the future, the Internet of Things (IoT) and Big Data Analytics are becoming necessary tools. The financial sector is benefiting from this digital transformation by providing new services through technology. With the advent of digital payments, the surge in adoption of these technologies is accelerating further.

Fintech startups in India

Fintech startups were one of the early adopters in India, as they helped bring fintech into the mainstream. UPI and digital payments account for 70-80 percent of all fintech transactions today. In India, fintech startups have a great opportunity to address the end-users pain points for payment transactions by assisting banks, fintech startups, and even other financial institutions. (This is not meant to criticize traditional banks or the financial services industry in general, but rather to highlight the significant growth fintech has helped India achieve.) The recent acquisition of 37-year-old PMC bank by a startup Bharatpe, which is three years old, is a good validation for fintech startups in India.

The Road Ahead

In the U.S., almost all major banks now use blockchain technology to simplify and secure paper-based processes. The tech giants IBM and Wipro recently debuted a blockchain-based platform to carry out interbank transactions and perform KYC checks. Interestingly enough, it took the two companies a year and a half to come up with this solution. In recent years, a wide range of fintech startups has focused on solving bank and fintech problems with blockchain applications.

Smaller startups are moving away from building social media marketing websites to creating innovative financial services. Fintech and start-up companies have grown enormously in the past few years. It is a start-up phenomenon," says Ram Srinivasan, CEO of CRISIL and author of the book "Debt - The Untold Story."

If we take a close look at fintech startups in India, it is clear that they are focused on solving customer problems as well as solving niche problems in the economy.

Conclusion

We now work, travel, and shop in different ways as a result of major technological advances. Recent developments in the fintech sector in India have been astounding. Fintech in India is dominated by three key industries: lending, banking, and payments. A big reason for the phenomenal rise of the fintech industry is undoubtedly the country's strong economic growth.