Youth of today are driving the adoption of fintech applications in a variety of jurisdictions, while new emerging technologies are increasing trust and making it easier for the elderly to ride the digital money wave.

Belief in technology companies

According to a Bank of International Settlements study, the use of fintech is higher in countries with a younger population, such as India, South Africa, and Colombia. According to a survey, 91% of Indian respondents, 86% of Chinese respondents, and 60% of US respondents will prefer financial products from technology companies they already use, with younger consumers showing even more interest (ages 18-34). However, due to high-profile data breaches and controversies in the past few years, confidence in technology companies may have deteriorated.

“India now has an underlying infrastructure core on which many fintech firms can blossom.” –Rajesh Kandaswamy

Demand for banking services

Unsatisfied demand for basic banking services, such as payment methods and money transfer services, is likely to be a driving factor behind the rapid growth of mobile payments offerings in countries such as India, which is expected to continue.

New players in the financial technology sector

New fintech companies have marked out a strong presence in mobile payments, especially among retail customers. “Techfin” or “big tech” players, as one form of fintech, are becoming more relevant as payment providers in some countries, but not in others. According to the most recent data and fintech press release , big tech mobile payments accounted for 16 % of GDP in China but less than 1% in India. Mobile payments are booming in emerging markets, thanks to the high numbers of customers who own smartphones.

Increasing in Blockchain security

Since financial transactions are vulnerable to threats and attacks, security will be a major concern. According to an EY survey, Blockchain technology would be all the rage, owing to its outstanding features such as transparency, immutability, traceability, and auditability. When it comes to the exchange of money and confidential information, blockchain would be able to provide a high degree of protection, enabling users to benefit from its openness while lowering operating costs.

NLP-based chatbots

According to PwC India, Fintech can revolutionize mobile banking by using NLP-based chatbots and innovating Conversational User Interface (CUI). These chatbots will be able to respond to customer issues and provide effective solutions in real-time, thereby improving the customer experience.

Cloud banking

There will be a huge reduction in cost by implementing cloud computing technology, as there will be no extra investment required for managing resources. As it removes the dedicated hardware. In order to meet consumer’s needs, cloud adapts to changing demands and provides resilience. Resources of cloud can also be scaled depending on the demand and allow for easier integration with advanced technologies.

Peer-to-peer lending

In certain segments, peer-to-peer (P2P) lending, marketplace lending, and other fintech credit networks have become economically viable. Fintech lenders, for example, accounted for 8% of new mortgage lending in the United States in 2016, and 38% of unsecured personal lending in 2018. In China, the US, and the UK, these platforms are economically important in the financing of small and medium-sized businesses (SMEs). In the US and the UK, such platforms provided SMEs with 15.1 % and 6.3% of equal bank credit, respectively.

Insurance technology

To identify the probability of danger and use in real time, technology integration with electronic devices such as smartphones, smart locks, and black boxes in cars is used. For example, an insurance provider may detect a person about to walk down a road where many people have recently skidded using mobile signals or other sensors. When the policyholder is walking down that lane, the insurer may either send a message advising them to walk more carefully or automatically raise the premium and coverage. In other words, it will use real-time data to analyze the physical world, saving customers money on insurance and putting more pressure on them to make right decisions. If a vehicle is parked and not in service, InsTech may be used to lower the insurance premium.

To conclude, India appears to be both promising and purposeful, despite its own set of challenges. The market's current turbulence is trending upwards. With growing financial awareness in India, any company entering the market will need to strike the right balance between product and market, invest in consumer education, develop creative business models, and create a Fintech agency in India.