18 Aug The next wave of fintech revolution will come from the next billion ‘Atmanirbhar’ Indians
Indian consumers are well primed to be swept off their feet by the financial technology, or the ‘FinTech’ revolution. Currently home to over 687.62 million (0.68 billion) total internet subscribers (~439.99 million urban vs ~247.63 million rural), India is leading the fintech revolution, second only to China.
With over 45 wallet players, 50 UPI-based payment providers and 142 banks on the UPI platform, digital transactions for shopping, travelling, paying bills etc. has become a habit for tier 1 and tier 2 regions. Even in the far reaches of tier 3 and tier 4 rural India, most digital transactions are mainly for utility bill payments such as mobile recharge, DTH, gas, water or electricity. Government-led ‘Digital India’ has also helped increase the acceptance and awareness of smartphone-based services.
Undoubtedly, it is the next billion ‘Atmanirbhar’ Indians who will significantly shape the next fintech wave for the world. Let us look at a few positive trends we have noticed in our journey towards ‘Cashless India’ in 2020.
- Affordable social protection – Rural India is relatively less covered and aware of social protection financial products such as life or health insurance, mainly because of the cost involved. After the pandemic however, more people wanted affordable COVID-19 insurance policies, now made digitally available from their smartphones, starting as low as Rs 159 only.
- Tech-supported rural entrepreneurship – Sadly due to lockdowns, most daily wage migrant workers had to travel back to their homes due to unemployment or stopped work. With small loans of Rs 5,000 – 7000 from the True Balance app itself, we have seen empowering stories of rural Indians either starting a small business or lending to fellow villagers in need for electricity, gas or mobile bill payments.
- Easy, secure and safe investments – It has not always been easy for rural India to invest in physical gold at high costs. With digital gold or ‘DigiGold’, rural Indians are turning into investors by purchasing gold with prices as low as Re. 1, in less than 10 minutes and without getting out of the house.
All for finance, finance for all
The government is doing everything, including creating a free education Door Darshan channel – ‘DigiShala’ – reaching almost 2 to 2.5 crore rural Indians to teach ‘atmanirbharta’. It is also high time that we educate ourselves and everyone around us, about the different ways we can financially protect and grow ourselves, as well as others around us.