Page 186 - ICDEBI2018

International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101

witnessed a surge in usage of their wallets and the
money loaded into them post November 8. Now, the
habit of evading taxes will not change overnight, but
other major hurdles such as awareness, internet
connectivity and infrastructure in terms of digital
payments can be dealt with now. While urban centres
mostly enjoy high speed internet connectivity,
suburban areas are deprived of a stable internet
connection.

One good thing is that people from the rural parts of
India can impeccably transact through mobile phones
with the help of the recently launched UPI (Unified
Payments Interface) by NPCI (National Payments
In most emerging markets such as India, strategies
focused on collaboration, offering a sustainable Corporation of India) making digital transactions as
simple as sending a text message. While the Indian
change in the market are easy to implement. With the market is large and warmed up for financial
capability to collaborate, start-ups cross the gap from innovations, start-ups do face a unique set of
being a small, successful business to potentially challenges. While the government is trying to simplify
scaling their solution for a very large customer base. the development of new financial technologies, the
With improvements in flexibility, accessibility and market regulations are still tough. Also, access to
quality of such products and services, functionality consumer data is scarce as India is still a case-centric
and online experience becomes better, which in turn country, leading to a high risk for fraud and loops in
will lead to greater level of trust in traditional security and there is lack of consumer education
institutions. While digital finance firms have which prevents people from getting on board easily.
benefited from the governments pro-start up policies The digital revolution is transmuting operations across
and flexible regulatory conditions imposed by the the financial and banking sector. What looks cheering
Reserve Bank of India (RBI), formal institutions is that the Indian government and regulatory
possess an established infrastructure and legacy that is institutions have endorsed an entrepreneurial climate
not easily replaceable. Fintechstart-ups need to for Fintech in India. However, policies and
encourage greater confidence among Indian governance will need to match the speed of
consumers, already known for being conservative in innovation in this sector, predominantly to ensure
their financial preferences. On the other hand, secure and transparent growth.
traditional banking and financial institutions can
leverage their existing customer base and adopt digital Promote a Digital Approach to Financial Inclusion –
products that nurture strong financial relationships Promote digital financial services as a priority to drive
while improving service efficiency and broadening development of inclusive financial systems, including
access to meet changing needs. The disruptive through coordinated, monitored, and appraised
potential of Fintech firms can provoke the much national strategies and action plans. Of course, in
needed modernization of the traditional sector, countries with widespread access to banking,
reducing costs in the process and increasing the size incumbents’ pursuit of digital by default strategies
of the banking population. Reacting to these risks causing damage through the exclusion of
opportunities and challenges, banks like Federal Bank consumers who cannot, or choose not to engage with
announced a partnership with Start-up Village to digital channels, particularly if bank branch closures
develop innovative banking products, the U.K. giant ensue. It will be significant that those working in the
Barclays is set to operationalize its fifth global consumer interest maintain sight of the interests of
Fintech innovation centre that will be located in India, these groups and guarantee they are treated
and Goldman Sachs Principal Strategic Investments impartially by breadwinners.
Group (GSPSI) is looking to invest in Bengaluru's
Fintechstart-up scene. Mobile wallet firms like such
as FreeCharge, MobiKwik, Oxigen, Paytm, etc have

@ IJTSRD | Available Online @ www.ijtsrd.com | Conference Issue: ICDEBI-2018 | Oct 2018 Page: 178