Fintech thrives in unbanked countries, and nowhere can exemplify this better than in India. Only forty percent of its 1.3 billion populace have a bank account, meanwhile fintech investors pumped $2B US into the sector in the first half of 2017 alone – more than double that of fintech hotspot the U.K.
Cash is still a huge part of the Indian consumer’s habits, being exchanged for even large items like cars or homes. But a surge in e-commerce has turned consumers towards mobile payments, and large scale investment in Indian startups such as Mobikwik and Paytm are predicted to usher a ‘cashless revolution’ by 2023.
Starting a fintech business in India has never been more attractive. A number of regulatory milestones have been initiated by the government and India’s regulators, with fintech companies predicted to be worth a staggering $500 billion in 2020. The implementation of the Aadhar identity cards and virtual payment addresses streamline the KYC process, while tax relief for startups and initiatives such as Start-Up India add financial incentives for the sector.
While 52% of Indians have adopted fintech into their daily lives, half of its users have reported problems adapting to the new technology – a lack of education surrounding fintech use and poor internet networks being the greatest barriers. The future of fintech is bright in India, but its customers won’t be satisfied until other sectors develop at the same rate.
Let's take a look at some of the facts:
Infographic made by Adam Ioannidis