This is an era of technology and it is marked not just by natural advantages of innovative hi-tech interventions but also by sheer convenience extended to the end-users. The digital confluence of fintechs, e-commerce and banking sector is one of much talked about change in system that has revolutionised the way even a common man functions.
Shopping and paying for same, borrowing loans or opening bank accounts no longer means hectic process. If numbers are to be believed then the rise of omni-digital banking customer has grown from 27 per cent in 2012 to 46 per cent in 2017.
Increasingly, banks are learning to adapt to digitisation and fin-tech firms are providing efficient solutions to make bankers and their customer’s life easier. In fact, banks are now taking various proactive steps to promote fin-tech revolution in the country.
Recently, Yes bank tied up with Innovation Centre Denmark India, a partnership between ministry of foreign affairs of Denmark and the Danish Ministry of Higher Education and Science to bring innovations and assist companies in India and Denmark to expand into each other’s markets.
The fin-tech sector, which is witnessing a metamorphosis in present age of digitalisation, when seen in combination with inherently linked sectors like banking and e-commerce is setting up the pace for huge economic growth. The biggest manifestations of technological revolution in fin-tech, banking and e-commerce world and is transparency in transactions.
It simply means that once the person has linked his account with any of the fintech platform of his choice, he is all set to use it as per need of the hour. A bank account that is linked to this platform makes it highly convenient for users to complete shopping from an e-commerce site that accepts payments through it. Hence, the distance between seller and purchaser has now vanished paving way for the world to become a village with closely interlinked set-ups.
Today, the fin-tech platforms such as Paytm, CreditMantri and BHIM are facilitating consumers with easy-to-use e-payment services that can be utilised in various fashions both for commercial and non-commercial purposes. The digital linkage with bank accounts has made life easy for all those e-commerce players who were earlier facing constraints due to distance and time.
Such firms are actually taking payments to the next level in terms of speed, convenience, efficiency and multi-channel accessibility. They are easily driving client behaviour and fuelling expectations for better, faster and more innovative solutions across the payments spectrum and making existing customer relationships with banks a lot better than ever before.
Further, as one can easily transfer money from his account (online) to a brick and mortar bank account or vice-versa, it has made it easy for online business doers to obtain payments in return for goods and/or services, thus, giving them a valid reason as well as platform for business expansion. This makes it clear that conflux of widely growing e-commerce, transforming banking and fintech sectors is something that holds huge promise for end-users not just in developed world but in developing countries like India as well.
The digital confluence of fin-techs, e-commerce and banks has also made a considerable impact on small and medium-scale enterprises. The digital lending firms have made it possible to provide hassle-free loans.
It can be concluded that fin-tech sector that is equipped with digital technology will be more popular in coming times. Whether it is users from rural or urban regions, all will make use of fin-tech sector to make their transactions safe and fast. Further, the online payment platforms are capable of being linked to e-commerce sites designed in a way to ensure just same for all users from business or non-business world.
Thus, the digital technology with its natural benefits such as greater convenience, smart usage by users in much lesser time right at the doorsteps of buyers may disappoint only those who are either not in a genuine position to avail facility or those who are not willing to adapt to changes in the finance sector. For the rest, digital confluence of fintechs, e-commerce and banks will bring in host of benefits.
The writer is founder, Cash Suvidha