FinTech vs Traditional Banking: The Indian Scenario

FinTech, or financial technology, is the use of innovative and disruptive technologies to offer better, faster, and cheaper financial services. FinTech has been growing rapidly in India, thanks to the supportive policies, infrastructure, and demographics of the country.

FinTech startups are challenging the traditional banking sector by offering more convenient, accessible, and personalized solutions to customers. In this blog, we will evaluate the growth of FinTech startups in India and how they are changing the dynamics of traditional banking.

Growth of FinTech Startups in India

India is one of the fastest-growing FinTech markets in the world, with over 2100 FinTech startups operating in various segments such as payments, lending, wealth management, insurance, and blockchain. According to a report by BCG, the Indian FinTech market is expected to reach more than $190 billion by 2030. Some of the factors that have contributed to the growth of FinTech startups in India are:

• The digital transformation of the economy is driven by initiatives such as Aadhaar, UPI, GSTN, and India Stack.
• The rising demand for financial inclusion, especially among the unbanked and underbanked segments of the population.
• The increasing adoption of smartphones, internet, and social media among the young and tech-savvy customers.
• The surplus of capital available from domestic and foreign investors, who see the potential of FinTech in India.

How FinTech is Changing Payments

Payments is one of the most mature and competitive segments of FinTech in India, with players such as Paytm, PhonePe, Google Pay, and Amazon Pay dominating the market. FinTech has transformed the way people pay for goods and services, by offering: