Entering 2024, FinTech in India is brimming with exciting trends. With some changes, there is promises of seamless, accessible, and personalized services.
Here are some key trends to watch out for:
- Embedded Finance: Imagine buying insurance while getting a loan at the checkout. That’s what embedded finance is- integrating financial services into non-financial platforms. These include e-commerce, social media, and even gaming. This convenience and reach will make a lot of people adopt this way of finance.
- AI & Machine Learning (ML): These technologies are now more than fancy words. They’re powerful finance products that can perform tasks like identifying fraud. It’s expected that AI-driven finance platforms are going to trend this year.
- Open Banking: Open banking has a lot of power to change the way we manage our money. It’s a game-changer in the financial world with more control over your money. It’s also opening doors to unique money-related services. Imagine your financial data as a locked box and only your bank has the key. With open banking, you hold the key and can choose to share your data with others like FinTech companies.
- Decentralized Finance (DeFi): DeFi can change banking by offering peer-to-peer lending without middlemen. Blockchain technology will help by providing a secure and transparent system.
- InsurTech: Things like insurance for small amounts and automated customer support will be trending soon.
- Regulation: The RBI is shaping fintech with initiatives like open banking for new ideas.
- Focus on Rural Financial Inclusion: Solutions to make finance easy for the population in rural areas are being developed.
- Rise of Neobanks: These digital banks have low costs, user-friendly apps, and flexible products.
- Sustainability: Sustainability can be promoted through financial solutions for renewable energy projects.
- Skill Development: As the industry grows, demand for talent with unique skills will be needed.
These are just some of the key trends shaping the Indian FinTech landscape in 2024. With its market potential, India is soon to become a global leader in FinTech innovation.