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.
- 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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