Fintech is a wide sector with an extensive “history” and is much more than just a mobile app for everyday payments. Looking at the timeline of financial technology developments (the last 65 years!) exemplifies a picture of continued innovation and evolution. The same, applied to Indian market, with favorable government policies and an advanced banking regulator, the sector is prepared to further intensify and diversify its impact.
Even though India has embarked in this economic revolution and is thriving, 2017 will witness some trends which will dominate the sector throughout the year and coming:

1. Inception of Crypto Currency
Crypto-currency, for instance Bitcoin is the latest disruption in the e-currency landscape, and by far is immune to most of the challenges faced by other modes of transactions. Quite young as a concept, Bitcoins have already started attracting interests from users for both, investment and savings. Not just users, the government too has set up a panel to come up with a set of recommendations before the end of Q3 2017.

2. The Upsurge of Micro Payments
Key advancements of 2016 have increased the need for more micro payments. Like the launch of Unified Payment Interface (UPI) by National Payments Corporation of India (NPCI) followed by smartphones’ affordability and improvement in the internet infrastructure. Besides, post the demonetization, government has initiated digital literacy campaigns on how to make payments using Aadhaar, e-wallets etc. With the increasing emphasis on cashless economy and ready infrastructure, micro payments will observe a boost.

3. Anticipate newer Lending Models
FinTech enterprises are further motivated with Prime Minister Narendra Modi enhancing credit scheme for SMEs and RBI easing its regulations. Stimulated with the intent of democratizing financial services, while aiming for exponential growth, these FinTech startups will come up with newer models for lending, especially in the P2P Lending space.

4. Advent of Smarter and More Secured Solutions
The rise in digital payments and online lending also increases the scope of the hackers, hence fintech is always innovating and utilizing the best of technology to ensure impassable security of customers’ data and information. Apart from Biometric technologies like Face Scan, Iris Scan will also be included in the security module.

5. Adoption of Artificial Intelligence
A recent Accenture report found that the introduction and further development of Artificial Intelligence could boost labor productivity by 40% by 2035. It has the potential to eliminate human error in banking procedures, allow banks to understand customer demands, make credit cards extinct, and influence the attraction of the unbanked to financial services. At the consumer level, every application of AI will require some level of payment and that’s where Fintech comes in. Such a relationship between the two trends will become key for the success of digitalization in the future.

Encapsulating the top predictions for the sector is definitely exciting. However, it’s more interesting to see how the sector will manifest these forecasts, evolving with the perpetually changing needs of the present times. Another leading sector digital marketing & SEO services in India will be covered in next article.