Before we start with “What is Fintech?”, doesn’t Fintech sound so much like Finland? I know. I laughed at it too. The vastness of Finland is 338,424 sq.km. The vastness of fintech? 510.072 million sq.km. Blown away? Well yeah. That was the area of the earth. Because that is exactly where fintech is used. All around the world! Thinking what the heck does fintech mean? Let me help you. Fintech basically means financial technology. What is that? That is the use of computer programs to support and enable financial services. It is used to help companies, business owners and consumers better manage their finances. It is widely implemented via computers and smartphones.
Earlier, it was just one of those high tech, fancy back end application for banks. However, with increasing technology and escalating use of internet, it is any and everything from money transfers, passing checks via mobile, raising money for business startups. Guess the statistics! A billion dollars?
5 billions? Nopes. In 2016, startups received whooping $17.4 billion and that went up to $83.8 billion in 2017 and it keeps growing. The most used sectors, you ask? Digital cash, cryptocurrency, blockchain, openbanking, cybersecurity and the list goes on. The next time you wonder where Bitcoin comes and goes from, you got the answer peeps!
There are four broad types of fintech(s).
- B2B – for banks
- Their business clients
- B2C – for small businesses
And the fourth? It is for you, me, him, her, everybody. It is for the customers. I know it sounds very fancy and something that you are pretty sure you haven’t used. Which technology do you think you use to transfer money from your bank when you pay for that amazing pair of shoes online? Yeah well, it is the fourth one.
Fintech in india
Multiple factors are driving fintech in India. These include inefficiencies in the country’s banking system, a large unbanked and underserved population, steep smartphone penetration, increasing access to the internet, a booming ecommerce market, and availability of a large talent pool which understands both technology and financial services. A key pillar is the strong support from the government by way of initiatives such as the financial inclusion program Jan-Dhan which aims to ensure that every Indian has a bank account, the biometric and iris-based Aadhaar which aims to give every Indian resident a unique identification number, and the Unified Payments Interface.
Welcome to the elite club of fintechs. Now that you got my point, let me sign off and use fintech to order a sub on Swiggy. You can keep Scooping up more wild technologies. 🙂