Almost every startup news that we read nowadays is most probably about Fintech. It talks about the round of funding, it talks about the disruption, the jobs created, the new targets achieved and the great new ways in which the common man has benfitted. The question we all ask is – how come these startups are able to make significant progress in such little time? Why is it that some banks are upset about these startups stepping on their toes and taking their consumers? The answer is simple – CONSUMER
Finance and banking has for long been a little too complex with all the documentation that is needed even to do extremely simple tasks like opening a bank account, which still is difficult for some people. Fintech companies are able to go to remote corners of the country and help the consumer out with whatever he needs. The consumer can avail every banking and financial service in the palm of his hand. With the internet, fintech has revolutionised the way we conduct business and finance is not an exception. It has made a lot of things simple for consumers – ordering food, ordering groceries, hailing a cab, buying clothes, buying insurance and hence finance, which was the biggest elephant in the room, was targeted next.
These startups have been focusing on simplifying the world of finance for consumers. Finance affects us daily and an inability to use it appropriately causes a lot of problems. Fintech startup’s ability to lend/ offer credit to individuals and businesses, offer mobile wallet services, be an aggregator, provide robo advisors and crypto currencies is setting them apart from banks/ financial institutions and making them a sought after option. The vast number of masses who are benefitting from fintech, from going digital and from India becoming a cashless economy is what is bringing in the numbers for these companies. Their singular focus on making a consumer’s life better is what is allowing startups to reach a wider audience and is allowing them to raise a lot of money by building a large organization with thousands of employees.
Fintechs are here to stay as they are now collaborating with banks and other companies to provide more services. This is creating a positive disruption in the market, thus creating more opportunities and jobs for the right people with the right skills.