FinTech, short for Financial Technology, has been making waves in the Indian financial ecosystem in terms of b2b payments in India for a few years now. FinTech is now a significant force to be reckoned with in this new age. Today, India is one of the largest FinTech markets with the highest FinTech adoption rate of 87% worldwide. Especially post-Covid, India, along with some of its global peers, has seen tremendous growth in FinTech.
Fintech Credit Cards & B2B Payments Solution
As per the latest report - "India FinTech: A USD 100 Billion Opportunity" by Boston Consulting Group (BCG) and FICCAI, India's FinTech Industry is estimated to grow up to USD 150-160 billion by 2025. The report also noted that Indian fintech companies have raised about USD 10 billion from investors all over the world over the past five years, catapulting the sector's total valuation to an estimated USD 50-60 billion.
India is also only second to the US in emerging FinTech-based start-ups with around 2100+ FinTech start-ups as per MEDICI's India FinTech Report, 2nd Edition. Of the over 2,100 fintech firms existing in India currently, 67% have been set up in the past five years.
COVID-19 has further accelerated the pace of digitization across categories. While Indian FinTech has cumulatively raised more than USD 10 billion since 2016, eight fintech companies have reached the 'billion-dollar-valuation' milestone (unicorns), and an additional 44 are valued at over USD 100 million as of date, the report said.
Between March 2020 and January 2021, B2C & B2B payments in India (by value) have risen to 3x their pre-pandemic value, with three new unicorns and five new 'Soonicorns' (about to become unicorns) being created since January 2020, the report said.
Digital Lending Platform & Fintech Payment Gateways in India
"We believe that India's FinTechs are at the precipice of a significant value-creation of USD 100 billion over the next five years. To actualize this potential, the industry would require additional investments to the tune of USD 20-25 billion," BCG Managing Director and Partner Prateek Roongta said. Consequently, the number of Indian fintech unicorns will more than double by 2025, he added.
While Fintech is becoming the lifeblood of an economy, Injeti Srinivas, Chairman, IFSCA, agreed that despite enormous potential in India, only a fraction of the economic transactions happen digitally via fintech corporate card and other b2b payments India mode.
The government's Direct Benefit Transfer scheme, Digital India, Start-up India, and UPI initiatives however can be a great trigger to this process combined with the talent at the grassroots level that made use of this opportunity, said Srinivas.
A new report from Deloitte India also noted that Fintech companies have grown a staggering 13x to 70x over the last two years. The aggregated revenue of the top 10 companies has gone up from about USD 20 million to approx. to USD 70 million between the 2018 to 2020 period.
On the contrary, a new report from Accenture noted that despite the significant increase in the adoption of digital technologies over the past few years, there is a continued lack of technical expertise and digital fluency in the boardrooms of the world's largest banks and India, of course, is no exception to the rule.
According to the report, Accenture recommends that technology experience for making business payments. While the world's largest banks have made progress in adding technology experience in the boardroom, progress has been slow. That gets reflected in their way of dealing with customers and other stakeholders as well.
On the brighter side, several banks are now joining forces with FinTech start-ups to upgrade their existing systems and enable smoother operations to deliver a better experience for consumers towards digital lending platforms & b2b payments in India. Similarly, by leveraging data analytics, FinTechs have encouraged collaboration between numerous financial service providers and enabled them to deliver products and services through an open architecture.
As Sanjay Doshi, Partner and Head of Financial Services Advisory, KPMG in India, commented, "Many of the banks in India are now going down the path of digital. They are looking at tech and fintech credit card companies that can help them move their digital activities forward, either investing in them directly or using them as service providers. That is going to be a big growth area for investment here in India — banking-as-a-service platforms."
Digital Payments & Fintech Credit Card India
In a report by Infosys titled 'FinTech Revolution in Banking: Leading the Way to Digital', crucial reasons are mentioned that led to the FinTech revolution. Traditional banks have many problematic issues that FinTech can help resolve effectively.
According to the report, the various reasons are:
Banks are highly regulated and bound by numerous compliance norms
Banks have high operating costs due to the high number of branches across the world
Banks have poor visualization beyond traditional business lines as they are publicly held companies averting risk propositions
Low involvement of customers in the center of operations
Low investment in innovation and technology
Low collaboration with progressive minds Lack of focus on individual profitable products and services
Difficulties and resistance in upgrading legacy core banking infrastructure
Adopting Fintech Credit Card in India
Due to the above-mentioned reasons, banks shy away from adopting the full potency of FinTech credit card India that can truly enhance the way banking happens. What banks don't realize is if they partner with FinTechs rather than looking at them as rivals, they can earn many fruitful rewards from this dynamic partnership.
Collaboration of banks and Fintech can result in:
Safe and Secure Banking
Mutual Growth
Wide Range of products and services
Ease of Transactions
Discounts & Offers
High Return on Investment Regulatory Support and Government Incentives
Venture into New Alternate Business
With a high demand for B2B payment solutions in India, EnKash is now emerging as the best FinTech company to serve the nation. Just take a glimpse to get an idea.
Fintech - More Than a B2B Payments India Solution
These reasons should be reason enough for banks to break all shackles and wholeheartedly embrace all that FinTechs have to offer such as Fintech credit cards, b2b payment setups, and more. FinTechs offer services in the form of products, applications, business models, and business processes.
FinTech start-ups are taking core and non-core banking business to the next level by providing faster, smarter, and more innovative solutions in all spaces.
Emerging FinTech players like EnKash offer the smartest all-in-one platform for all kinds of commercial spending and needs for B2B payments. By enabling card payments where cards are not accepted, EnKash has made B2B payments robust yet insightful.
