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The financial sector is undergoing a tremendous change, thanks to the fintech disruption that has challenged the traditional methods of doing business. Though the use of technology in this industry is nothing new, it has never before witnessed this fast-paced and ingenious use of innovative technology to deliver easier, better, and quicker financial services.

From insurance to digital wallets, fintech tools have opened new frontiers for financial services and have found favor from both tech-focused startups and traditional financial institutions. According to a report by NASSCOM, India has about 400 companies involved in the fintech industry, and the fintech market is expected to be worth $8billion by 2020. By the looks of it, we can safely surmise that fintech is not a hype but will play a huge role in redefining the financial sector in future. Here’s why:

Demand for new products and better services

Today’s tech-savvy generation wants to move beyond the conventional financial products and services. They want alternative instruments that can be accessed online and are designed to suit their requirements. For instance, instead of queuing up in the bank for loan approval, they want instant and hassle-free loan transfer. Hence, we can see the boom in Peer-to-Peer (P2P) lending which can be conducted through online services where lenders are matched with borrowers.

Growth of startups

The evolution of startups has also boosted the demand for fintech. As businesses driven by technology, they want innovative and tech-based financial services and products for their enterprise and their customers.

Government support

Government initiatives like Digital India and demonetization have provided a clear boost to the fintech ecosystem. The demand for digital financial services has increased, and so has the need to come up with cutting-edge technology to address this demand.

Maturity of e-commerce

The popularity of e-commerce is another reason for the growth of fintech. Online shopping is no longer restricted to the metros and Cash-On-Delivery is not always the preferred mode of payment today. According to a report published by KPMG in 2016, Paytm crossed a user base of 100 million in 2015 itself. We can expect that number to have increased in 2018 and can assume that it will continue to do so in the coming years.

Competitive financial environment

The competition to reach out to new customers and keep the existing customers happy has prompted financial service providers to embrace fintech tools. Banks are taking the initiative to provide customer-centric and tech-based payment methods and some are even collaborating with fintech startups to come up with innovative products.

In short, the environment is conducive to the growth of fintech and demands for new and tech-driven financial services are not showing any signs of slowing down. Fintech has emerged as a force that has the potential to define the future of the financial services industry. In case, you are keen to adopt fintech tools to give your business a boost and reach out to more customers, contact 3i Infotech. For information about the company, visit < https://goo.gl/Dss8yP>