The Indian finance industries will look vastly different in 2022. The banking sector, which accounts for 64% of the total assets in the financial system, is an essential part of the industry. It has evolved from its traditional money-dealing enterprise to an entirely digital one. The government has facilitated the transition by simplifying regulations and improving customer services. Big tech companies have entered the lending space and competed with established banks and regulated financial entities. The RBI is working to introduce technological standards for banks and financial institutions to compete with the new entrants.
The emergence of FinTech companies has revolutionized the Indian banking ecosystem. It enables consumers to receive interest-free credit in exchange for spacing out the interest-bearing installments. The industry has grown to $3-3.5 billion in the past year and is expected to grow to $45-50 billion by 2022. This growth is due to the widespread adoption of mobile technology, which allows users to pay with their mobile phones, tablets, or laptops.
The emergence of new technology services has transformed the banking industry in India. The “Bank as a Service” (BaaS) business model offers customers the ability to pay for a product or service by making multiple payments over a more extended period. The BPL model technology allows consumers to build a flexible repayment schedule, which is more convenient for them and the company. As a result, consumers are more likely to stay with their current financial institution while having access to various financial products.
Using technology to improve consumer experiences has driven the emergence of open banking. This concept blends technology and banks, allowing banks to offer their services and data to various innovative apps. The resulting platform can provide seamless financial services, and the new platform relies on networks to provide the convenience of digital payment options. Further, fintech is also disrupting the industry in tier two and tier three, fueled by the growing need to connect with consumers.
Despite the current volatile and uncertain environment, the Indian economy is slowly recovering. Although the third wave of COVID-19 has depressed many employees’ plans to return to work, it will not have a lasting effect on the growth plan in the long run. This upcoming year, the digital transformation of the Indian economy will spur the development of the banking and fintech industries in India. It will help improve customer service and provide new options for its customers.
In addition to a strong banking and financial sector, digital assets could become a powerful tool in the future. For example, non-fungible tokens like bitcoins could redefine a lot of money and investment. Further, tax and regulatory relaxations could spur the development of the banking and finance industries in the country. If these trends are successful, the Indian economy can become a significant player in global markets. Its growth will be primarily driven by the digitization of the economy and innovation in the finance industry.
The Indian economy is also experiencing a digital transformation as technology advances. For example, there are more telephony services and many mobile devices. This trend is enabling the creation of a new generation of digital applications. It also means that banking companies can provide more personalized financial services to consumers, such as lending funds through chat bots. And this has the potential to increase the number of people who use financial services.
The telco sector will benefit from the 5G auctions in 2020, and classifying data storage as infrastructure will help telecom companies and digital businesses. According to the World Federation of Exchanges, the National Stock Exchange of India Ltd. was ranked fourth in cash equities by volume. In addition to commercial banks, there are also non-banking financial companies, new-age fintech startups, small and medium-sized financial entities, and payment banks. These entities’ diverse range of services will make financial solutions available to a wide range of customers.
The finance industry in India is a complex network of finance industries. Each has its own specific set of regulations and policies, but it has also benefited from the digital transformation. In addition to commercial banks, the country’s finance industry includes non-banking financial companies, such as new-age fintech startups and mutual funds. In addition to banks, there are also payment banks, mutual funds, and co-operatives. With so many sub-sectors, these organizations offer financial services to different customers.
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