Ten times growth is expected in Indian Fintech industry. You might be finding this as a funny statement; it is not, certainly. The credit lending space is expected to be the next giant of the fin-tech sector. Backed by the credit based products popular in the Indian market, it is likely to grow into N number of times. There are some solid reasons behind it. Let’s get into those one by one. The increasing volume and velocity of mobile payments will change the Fintech sector unexpectedly. Every single transaction, made digitally, will add some points in Digital India Initiative. The rise may be negligible when we count a single or a dual set of transactions, but the collective outcome of a month or a quarter year will definitely bring a visible rise in our digital movement.
If we analyze the steps taken by Indian government towards the cashless economy, we get a crystal clear flow chart. Pradhan Mantri Jan-Dhan Yojana (PMJDY) was introduced in August 2014 in order to bring millions of Indians under the benefits banking system. It was followed by Aadhaar-based transfer of LPG Subsidies which begins two months later, in November 2014. Aadhaar-based Direct Benefit Transfer begins in August 2014 which was introduced to bring the ration card holders under the line of cashless economy. Aiming to bring the black money within the range of income tax department, the Income Discloser Scheme had introduced on February 2016. Going forward, the United Payment Interface (UPI) was introduced in April 2016 whereas the Bharat Bill Payment came into effect from August 2016. Both of these schemes are directly related to the credit lending speed. In October 2016, the government had started moving all the central schemes towards the cashless umbrella, aadhar-seeded direct benefit transfer to bank accounts. Finally, in November 2016, our Honorable Prime Minister announced an immediate replacement of Rs.500 and Rs.1000 notes with newly introduced Rs.2000 and Rs.500 notes.
Unified Payment Interface (UPI) is also expected to be simple and effortless. You will be able to make your payment just by using a single identifier, whether it is a virtual address or the aadhaar card. We should not forget about Bharat Bill Payment System (BBPS) that had introduced by our government three months back. The final decision suddenly pulled out all the defaulters. It pulled in some positive air for the fin-tech commerce. Obviously, we, the common people are facing some unwanted problems, but we are moving towards a clean system. Moreover, we have nothing to lose if we are the followers of our system. This single decision will bring ten times growth in Indian Fintech Industry. Can you believe it? Conversely, the Indian economy has started taking the shape of the US or the UK economy. It is hard to believe for many of us, but a definite truth. Credit lending is going to be the king of our Fintech industry. However, the Jan Dhan Yojna was the pre-stage of cashless economy. It will play a major role in driving the Fintech segment. Credit lending will take a shorter staircase very soon which will enhance the availability of small business financing.