Fintech is an emerging sector in India’s vibrant tech industry. The startups and established fintech companies that illustrate how this rapidly evolving field is creating opportunities for Indian entrepreneurs to innovate and create a better portfolio of offerings for consumers are further growing our economy. The India Fintech Day served as the perfect platform for all stakeholders to understand and appreciate various innovations redefining the financial services landscape while creating potential partnerships opportunities.
As a part of its efforts towards supporting the emerging fintech sector, the National Association of Software and Services Companies (NASSCOM) organized a daylong conference focussing on India’s Fintech sector. The conference brought together top business leaders, government officials and topic experts from a range of financial institutions, industry bodies, multinational corporations and technology startups dedicated to the future of fintech to discuss the evolving trends and the impact of this disruption on the financial services industry.
The conference mainly covered the latest developments in the world of disruptive financial technology and specifically tackled topics such as implementing technologies like Blockchain, the practicalities of designing Machine Learning and Artificial intelligence initiatives at Banks and Financial institutions, the risks of a cyber-attack and the investment scenario. Addition to these, Founders of renowned startups like BankBazaar, Mobikwik, and Rubique, working in these areas shared their experiences and challenges in the ecosystem.
Speaking as a keynote speaker at the confluence, RBI Executive Director, Sudarshan Sen highlighted that different segments of financial technology are increasingly making consumer lives easier. He further sighted that cyber security forces should be looked with utmost importance and the government is continuously working towards bringing out regulation on various fintech evolution. However, evolutions also ask for proper customer education to curb cyber security issues.
“The financial services and financial technology are two closely related and highly integrated space in India. The companies should also make a note that they are not just giving a mere solution instead they should now look at the whole value proposition from a business perspective,” stated Sen.
This Is What Stats Have To Say
As per NASSCOM research data, the year of 2016 has seen a lot of enthusiasm amongst banks and startups alike for supervised and unsupervised AI and machine learning-based technologies. In 2016, the industry witnessed several cases of initiatives from banks, start-ups, and Indian IT companies to develop AI solutions relevant to the banking and the financial sector.
Globally, 31% of the AI startups (>700) offer Fintech AI solutions and have received > $900 million of funding. The Indian ecosystem, though small right now, is picking up momentum.
The year 2016 witnessed the birth of more than 70 startups. As per KPMG’s The Pulse of Fintech Q2 2017 Report, investment in fintech companies in Asia hit $760M across 51 deals.
A diversity of fintech hubs across the region continued to garner investment, with companies based in China, India, Singapore, and Australia represented in the top 10 deals in Q2’17.
Lending and payments solutions continue to gain attention in India in Q2’17 despite a dip in VC funding. Three of the top fintech deals in Asia was based in India, including ItzCash ($123m, M&A) and MobiKwik ($50m, Series C).
Lending startups continued to drive a significant amount of fintech investment in India during Q2’17. Blockchain also continued to attract attention in India, although no company has been able to provide a commercial model for the technology as of yet.
India’s Fintech revolution has entered a decisive period. The event quantified key drivers behind the growth of fintech are digitization, the expansion of technology innovation and the demands of Millennials for frictionless mobile solutions in financial services.
The Conference featured discussions from prominent personalities from FinTech, Venture Capital and Financial Services organisations that includes KS Vishwanathan, Vice President (Industry Initiatives) at NASSCOM, Srinivas Peri, Senior Director, NASSCOM, Sudarshan Sen, Executive Director – RBI, Deepak Sharma, CDO, Kotak Mahindra Bank, Neha Punater, Partner and Head – Digital Strategy, Innovation and Fintech at KPMG India, Manavjeet Singh, Founder and CEO of Rubique to name a few. This daylong event also composed of Investor Connect session where startups pitched to top 10 VCs in the fintech space.
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