The adoption of technology in financial circles across the world has seen a steeply upward trend in the past few years. India is not left behind by any means when it comes to technology incorporation in the provision of financial services. The average technology adoption rate across the Asia Pacific region is a decent 64% according to the index published by the Ernst & Young (EY) recently. Economic giants in the region such as India and China are spearheading this rising trend.
The FinTech adoption rate in the Indian market stands at an enviable 87%. EY surveyed over 27000 professionals across 27 countries worldwide. In India, 87% of the respondents responded positively when asked about the use of technology in financial processes such as money transfers, investments and savings, financial planning and budgeting, insurance, and borrowing.
Emerging markets such as India and China are home to huge populations that are increasingly educated and tech-savvy as the average income rises.
The huge middle class as well as the upper-middle class that India is home to makes use of a range of FinTech solutions in their daily buying and selling as the business and marketing landscape rapidly changed over the last decade. The boom of the internet and the wide use of smartphones in India have spurted this growth in the technology adoption in financial services as it did across a plethora of other sectors.
As e-commerce came to represent a huge market segment, financial services, and payment solutions were quick to catch up, and FinTech adoption was an almost natural consequence. Another reason, however, for this faster than anticipated rate is that large local businesses and small tech startups alike found the changing dynamics to be quite lucrative and dove head-on into this market. Even traditional financial service firms were quick to come up with FinTech solutions for the rapidly evolving market.
The transfer and payment solutions worked to raise awareness of the usefulness of FinTech adoption. Geographically, India is spread on an expansive territory; there are farfetched areas that do not even have banks. FinTech naturally was the solution, thanks to the mobile penetration even in those distant towns and cities.
Money payments and transfer services continue to be the leading avenues driving the FinTech adoption across India even today. 75% of the respondents were using one or more FinTech solutions for transfer and payment purposes.
All in all, the Indian population is highly receptive of technology-based financial solutions and the businesses, both established players and budding startups, have been entering the market to provide FinTech solutions to one of the largest market in the world.