Fintech Startups Gains Global Recognition, Paves Way for Financially Smart India

India has achieved the second spot globally with the largest number of financial technology (fintech) startups, according to a report. The first spot was booked by the United States leading the list. With a total of over 2,000 fintech startups, 42 percent of them are concentrated in Bengaluru and Mumbai followed by New Delhi, Gurugram and Hyderabad. Among all fintech startups, the ones who had maximum share were payment lending companies, insurance, and personal finance management startups. According to the report on Indian fintech ecosystem, there has been three-fold growth in the number of fintech startups during 2015-2018. Over 1,300 new startups were added to the base number of over 730 already in practice. The credit behind this achievement should also be given to some of the innovative programmes launched by state governments. Founding of Mumbai Fintech Hub by the Maharashtra government and Fintech Vizag Valley by the Andhra Pradesh government is a testimony to the fact. The sector has attracted the attention of investors significantly. It is an interesting area for investors to look at, as the insurance-tech startups are bringing the underserved population into the insurance fold through the digital channel. Existing companies are attracting customers by doing product bundling with successful categories that have a strong online presence in healthcare, travel, logistics, and automobiles. Hence, the share of the insurance market has increased in the past three to five years. Fintech startups have recently started taping the unmet demand from smaller cities and industries in terms of credit and financial guidance. These areas have humongous business growth prospects, especially looking at the deep smartphone penetration and information access. According to NASSCOM, things will continue to look up with Indian fintech market potentially touching 2.4 billion dollars by 2020. To add to the ongoing momentum and scale heights, fintech ecosystem will have to innovate and specialise in key sectors. That seems most plausible and promising with intelligent automation, artificial intelligence and blockchain. Co-existing and partnering with different sectors may also help create new possibilities for companies and customers.