Fintech

^CANVAS

Namaste Steemit Family,

In the last few years, India has emerged as a major market of FinTech sector, be it business growth or the fintech sector of the employment generation. Expected to cross billion dollar
In fact, the ever-increasing number of smartphones coupled with high customer expectations has rapidly transformed India's financial services industry. With the digitization of business to other activities, the acceptance of online financial services has increased tremendously. Methods have changed the financial services and payments space itself
As India is rapidly moving towards a digital economy, it is expected that fintech is the way forward for the Indian banking and payment system and there is a lot of growth opportunity in this sector. Along with bringing transparency in the system, it can be helpful in achieving the goal of financial inclusion

what is fintech

Fintech is an abbreviation for financial technology. This technology use in financial operations.
It uses traditional financial services and modern technology to manage the financial aspects of various companies and businesses.
That is, when you complete your financial work with the help of technology, then it can be called fintech and the company that completes this work is called fintech company. It seeks to improve the access and autonomy of financial services through
In this, Internet and cloud services are used to take advantage of end-to-aid services. But now due to the use of technology in the banking system as well, the core banking system has come into vogue and the transaction of money has become easy and we can call it fintech.

For example, UPI or BHIM app which is a part of financial technology, transaction of money is possible in just a few seconds, these days banks are launching their mobile wallet service one after the other, so it is because of these fintech companies. This is the reason why now banks are bringing these fintech companies with them.
These Fintech Startups Pay for Banks
Services like cash transfer are proving to be very helpful as well as it is providing banking services to the far flung areas of the country.
In addition, fintech companies are now offering thrift credit insurance and other financial products and advisory services. There are several key areas in which fintech is seen to be very active.

Fintech is an active sector

^pixabay

In which fintech is being seen very active, do you know what is the active area of ​​fintech
Some of the key active areas of Fintech include Digital Payments Digital Loans Van Tax Insurance Tax Cryptocurrency Digital Cash etc.
Similarly, block chain technology is also an active area of ​​fintech innovation, in which records of transactions are kept secure over a computer network rather than in a central ledger.
One such important innovation area of ​​fintech is open banking. Open banking is a system under which banks provide their application program interfaces (APIs) to third parties to develop new applications and services. Today, most of the fintechs in the country seem to be active in this area. Similarly, insurance tech is also an important area under which efforts are made to simplify and streamline the insurance industry through the use of technology. is
In addition, regtech is also an active area of ​​fintech. Regtech is the acronym for regulatory technology. It is used to help businesses comply with industrial sector regulations in an efficient and cost-effective manner.
Apart from this, there are many important sectors which are constantly achieving new heights in the FinTech sector of India.
Seeing the growing influence of fintech, the Reserve Bank of India is also taking steps to promote fintech among consumers. Recently, the RBI has introduced a design for a regulatory sandbox, it will be a live and control system that will introduce fintech to the world. Will allow testing of its new products on a limited scale before committing it to a limited scale, so fintech will face less loss in case of negative feedback and will also reduce the cost. This will allow fintech to test their products. Secure sector will also get this regulatory sandbox concept will help fintech to move forward in a cost-effective manner and will strengthen the existing position of fintech in India.

What is the current status of Fintech in India

^{Digital Payment systempixabay}

In the last few years, there have been many revolutionary changes in the financial system, banking services etc. in our country. and all types of financial transactions, small and large, can be done
The biggest change has come that now the financial system in the country is no longer dependent on the bank. A small section of the person can also be involved in the fintech system, today a person who transfers ₹ 5, 10 to ₹ 10,000 can also come in this system. If a person has to transfer money from village to city to a place where there is no bank, there is no post office, even in that case money can be sent through phone in minutes, this has definitely encouraged financial inclusion. is
That is, if you do not pay in cash to pay your taxi fare or restaurant bill, but through some service like Paytm or Google Pay, then you have become a part of Fintech Revolution in the country.
This revolution has not only ended for us and for you sir, but has also changed the form of banking services, transparency is also increasing due to the whole process being online, if seen in this way, in this field in India. A lot of work is being done and change is also visible. Fintech companies are proving to be helpful in providing banking services to every nook and corner of the country due to their innovation.
This is the reason that now banks have started considering them as partners, not their rivals, but today companies like Paytm, Mobikwik and Freecharge are growing rapidly in the country and in coordination with banks, small companies also get a chance to work on their new ideas. The government's effort is also to make the country's economy cashless, so the role of fintech companies is likely to increase even more in the coming days.

Do you know what are the growth prospects of Fintech Sector in India?

^Source:

The development of the Fintech sector in India is currently in its early stages, it is expected that this sector will give a big boost to financial inclusion which is the need of the hour. Is out Answer Banking facilities not accessible
Even today, a large section is dependent on moneylenders for loans, so the fintech sector can provide banking facilities to such people.
Fintech can address the challenges of financial inclusion in traditional financial and banking models
At present, lack of capital remains the biggest threat to the existence of MSMEs running in the country. Many MSMEs are on the verge of closure due to lack of capital and credit facilities.
In such a situation, the importance of fintech increases in the MSME sector, which also has the ability to overcome the lack of capital in this sector.
Somewhere, by providing easy and quick loans by Setel Startup, MSMEs will be relieved from frequent bank visits or complicated paperwork and Mantle can improve customer experience and transparency.
Fintech startups provide important services like convenience, transparency, personalized and comprehensive access and ease of use which help in empowering the customers. I have also emerged as a big player
Skilled professionals in this field are getting an opportunity to work on a good salary package, there is a possibility of creating more employment in this field in the future, but the challenges in this area are also not less.

What are the challenges facing the Fintech sector in India?

There are many challenges in front of the Fintech sector in India, one of the important challenges is cyber attacks.
In fact, automation of processes and digitization of data makes fintech systems vulnerable to cyber attacks from hackers. The recent cyber hacking attacks at several debit card companies and banks are an example of how easily hackers gain access to critical systems. Taxes can cause a big loss
Similarly, a major problem is that of data privacy. Along with cyber attacks, misuse of important personal and financial data is also a major concern for consumers.

^{Cyber AttackPixabay}

When any technology starts, it also has some risk factors. The biggest risk factor that is coming with the digital revolution is how to ensure data security Data security is still the biggest challenge
Then there are concerns about data privacy and money laundering.
Apart from this, stable broadband is also a big challenge.
It is very important to have a signal for a transaction, there should be no fluctuation in the signal, apart from this, the algorithm used in artificial intelligence should not be out of control.
In addition, the difficulty in regulation is also a significant challenge in the fintech sector.
At present, regulation of fast emerging fintech sector especially cryptocurrency is also a big problem Sir Sir currently in most of the countries of the world there is no special provision, so in the absence of regulation there is a lot of scam and fraud in this sector. developments, but due to the variety of services offered by fintech, it is very difficult to formulate a single and comprehensive solution to the problems of the sector.

In such a situation, the question is, what is the way forward?

^{Improve Cyber securitypixabay}
Fintech provide tailored solutions to the challenges facing India's economic sector as per the current needs.
Considering the Indian scenario, it is necessary to regulate the FinTech sector, however, while regulating in this area, special attention should be paid that any such effort should be helpful in its development and not cloud to strengthen the Fintech sector in India. Cyber ​​security needs to be chalked out for
India currently depends almost entirely on imports for both defensive and offensive capabilities against cyber attacks.
In view of the increasing acceptance and access of technology in various fields in the country, it is very important for India to achieve self-reliance in this field.
Similarly, there is also a need to focus on increasing consumer awareness, with the establishment of technical security measures, training the customers to take advantage of fintech and spreading awareness in terms of cyber attack protection will also help in the democratization of fintech.
At the same time, it is very important to establish a strong data security framework in the country so that people can avoid falling prey to fraud or cybercrime.

Thank you