The FinTech sector has grown significantly in India, discuss its potential and challenges in its mainstreaming.

The Fin tech innovations refer to new-age methods for streamlining financial transactions across digital payments, equity, insurance and other sectors.

Potential of FinTech Sector:

  • Goes with digital India and digital payments push of the government.
  • Convenient and efficient payments.
  • Secure – 2/3 factor authentication.
  • Ability to plug leakages in subsidy delivery/PDS.
  • Prevention of money laundering – enables monitoring of suspicious transactions.

Challenges in mainstreaming:

  • Lack of robust financial security mechanisms in mutual space.
  • Reluctance of people to accept.
  • Low internet penetration and high cost of hardware.
  • Regulatory compliances are cumbersome.
  • Concerns about data protection, fishing, data fraud.

Way forward:

  • Awareness about FinTech innovations.
  • Robust digital security ecosystem.
  • Spreading awareness about safe FinTech practices among people.

Regulatory sandbox for development and trial of new innovations.

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