Magazine : 
Is Fintech the Way Out to Revive Indian Economy
The entire world is gradually endeavoring to revive back to normal from the economic tumble caused due to the COVID-19 pandemic. Almost every sector has undergone a tremendous jolt during the lockdown phase and now is opting for possible measures to bring their businesses back to normal and the government is keen on reviving the country's economy despite the difficult times. However, fintech remained unaffected throughout, in fact, reports states that fintech firms had witnessed recurring growth in the first six months of 2020 while other businesses and lives as well suffered a heavy loss.
Fintech Remains Robust
According to KPMG's bi-annual Pulse of Fintech report, the investments made in fintech until June 2020 has doubled to $1700 million, as compared to last year. Though the fintech investment stumbles on a quarterly basis, the 134 percent year-on-year indicates that India would be a major opportunity for investors in the long term.
Thus, the COVID-19 pandemic proved to be quiet disastrous has turned out to be a blessing in disguise to the financial institutions, as only this sector remains unaffected in fact grew stronger even during the lockdown phase.
“Pre-COVID-19, fintech-driven financial services especially in lending, insurtech, and distribution have been attracting significant investments. Covid-19 has in fact fast-tracked the digital economy and significant investments are being made by established banks and insurance companies, which can also lead to acquisition and more investments from investors,” says Sanjay Doshi, Partner & Head – Financial Services, KPMG India.
India is in the process of getting back to normal through the unlock phase and we being at the fourth phase. The country is attempting every possible measure to restore India's economy. With the above reports, it is evident that fintech is one of the way out option for the country to leverage on. Furthermore, KPMG also forecasts fintech investments to be valued at 
4,323 lakh crore by 2023-24. Thus, the financial institution has the potential to bridge the gap to access financial services and assist the organizations, especially the small and medium businesses that rely much on credit and liquidity.
4,323 lakh crore by 2023-24. Thus, the financial institution has the potential to bridge the gap to access financial services and assist the organizations, especially the small and medium businesses that rely much on credit and liquidity.
Economy Revival Measures
To assist the small and medium businesses in its post-COVID-19 revival process, the Indian government has announced various measures. One among them is the collateral-free loans up to 3 lakh crore whose principle as well as interest is backed by the government. This has made it easy for the MSMEs to access credit from the banks.
3 lakh crore whose principle as well as interest is backed by the government. This has made it easy for the MSMEs to access credit from the banks.
The Reserve Bank of India has stated that the country's economy remains stronger despite the coronavirus pandemic and it states that the condition is better in comparison with the global financial crisis that had occurred a decade ago.
"In several aspects, the Indian economy and financial sector this time around was far more resilient than what it was during the global financial crisis," says Governor Shaktikanta Das, RBI.
Utilizing the economic slowdown as an opportunity, the fintech can offer financial solutions. The fintech is convenient for the customers to avail loans but the institution should focus on making the entire process safer. The customers can access these financial services remotely avoiding a physical visit to banks. Thus, the fintech should grab this opportunity and provide loans to the SMEs that are spreading its wings to fly high across the global market.
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