GROWTH OF FINTECH INDUSTRIES IN INDIA DESPITE COVID-19
"The major winners will be financial services companies that embrace technology." – Quote by Alexander Peh, PayPal, and Braintree
As Covid – 19 pandemic’s 2nd wave engulfs India in a very deadly grip as we speak; there are bright spots to keep us optimistic and hopeful of a better future. We need to look at the good in small things to ensure that we are not all in a negative frame of mind. One of the good things we need to be happy about is that the fintech industry in India is on a growth trajectory once again, after the hit it a rough patch like with most industries in 2020 when India imposed months of lockdown, to slow the spread of the deadly virus.
India is home to one of the largest fintech industries in the world along with the USA, Britain, and China among others. Over 2000 companies compete in this space with most operating out of Mumbai, Bangalore, and the NCR of the Delhi area. The reasons for the growth of this industry are the nation’s strong public digital infrastructure, India’s pro-innovation regulatory, policy regime. This helpful support system has allowed the fintech industry to become an important part of India’s financial services ecosystems by adding and popularizing novel propositions, experiences, and digital-first operating models, as well as enabling access to groups who are currently not served or underserved. As you know, the first set of fintech companies in the country focussed their attention on payments; however, they have now diversified to offer a plethora of financial services products.
Dealing with the Covid – 19 crisis, Indian fintech companies have reduced the fallout of the epidemic by adjusting their operating models. This means cutting overhead expenses by 15-20%, moving work to become semi/full remote, as well as shifting the product offering either by shuttering categories and holding back new launches. The average Indian going digital in a big way means many occasions for fintech companies to partner with people to aid their digital makeover.
With the above changes undertaken by the industry as a whole, it has meant that the 2020 impact has been cushioned and companies are now in an expansionist mode. Companies are back to their former situation and are even eyeing a slice of the pie of the international market (Primarily the many Asian markets). Some big names in India in this space includes Paytm, Billdesk, Policy bazaar, and Zerodha.