siliconindia | | MAY 20248Over the past few years, India has seen a significant uptick in the adoption of digital payment methods, driven by two major factors. Firstly, in 2016, the government's decision to replace old currency notes with new ones aimed at curbing illicit financial activities and tax evasion catalyzed a shift towards digital transactions. Secondly, the onset of the COVID-19 pandemic in 2020 amplified this trend, as concerns surrounding virus transmission through physical currency propelled a surge in demand for contactless payment solutions. Among these, the Unified Payments Interface (UPI) has emerged as a standout, renowned for its user-friendly interface and seamless integration across various technological platforms, appealing to both consumers and businesses alike. Debashis Banerjee, Head - of Marketing & Alliances, Happy, says, "FinTech has enabled millions of under-served people across the country to have access to financial services. Especially with the advancements in digitalization, finTech has gained significant traction in India. Moreover, as a result of various empowering initiatives taken by the government and significant controllers, finTech has had a huge impact on the global financial services sector and is developing at a break neck pace".The rise of digital payments has not only transformed the payment landscape but has also revolutionized borrowing and lending practices within the financial sector. Leveraging technological advancements, FinTech firms have disrupted traditional lending models, offering innovative solutions tailored to the diverse needs of individuals and businesses, including those traditionally underserved by conventional banking institutions. This transformative shift towards digital finance, with alternative lending at its forefront, is democratizing access to credit and fostering greater financial inclusion, EDITORIAL EXCLUSIVEHOW IS FINTECH TRANSFORMING LENDING IN INDIA'S DIGITAL ECONOMY?
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