There is a need for technological disruption in the banking sector in India. More than 20% of the population of the country still remains unbanked and this is where financial technology startups can make a difference. 2017 saw the emergence of promising fintech startups which are working to bring in innovation and disruption to the Indian banking sector.
There are more than 500 fintech startups in the country and they all strive to attain financial inclusion. The biggest change for the economy was the move towards a cashless economy which gave a boost to the fintech startups. The government’s promotion of digital wallets, POS and internet banking has managed to restructure the financial sector and disrupted the monopoly of traditional institutions like banks. India has more than 462 million internet users and the number of mobile users is expected to reach 1 billion by 2020. This shows the growth potential India has in the entire world. With easy access to internet and the penetration of smartphones, Indians have been able to usher in automated and efficient financial service solutions. With the entry of a number of big players in the digital payment market, India’s digital payments space has morphed into a $500 billion industry.
Here is a list of Indian fintech startups which have a huge potential to grow in 2018:
Faircent: Faircent is a peer to peer lending startup which seamlessly connects borrowers to lenders. It offers a number of tools like Auto Invest which is an automated feature that helps match the lender’s investment criteria with the requirements of the borrower and sends proposals to the borrower on behalf of the lender. It recently introduced a semi secure loan product which aimed at helping students avail fast and easy personal loans.
Simpl: Simpl is an online payment instrument that allows the consumers to make purchases and pay online. The mobile platform works by reducing the payment flow to a single tap and thereby improves the client’s product experience. The consumers can choose to pay one bill with all the online purchases added up. It already works with a number of merchants currently.
Kissht: The Mumbai based fintech startup provides instant credit to the consumers for making purchases at digital point of sale. Users can opt for flexible EMIs even without a credit card. After logging in, the users can see in app partners and purchase from the store. Kissht also provides an option to check the available line of credit with the ongoing loans. It also offers cash loans for purchase of consumer durables, short term loans, education loan and house renovation loan. Kissht is meeting the demand through quick loan approvals in the tier 2 and 3 cities across the country.
FTCash: FTCash offers seamless solutions for micro merchants to accept payments through multiple payment instruments which include mobile wallets, credit cards and debit cards. It also offers short term loans to these merchants. They offer loans ranging between $1,000 to $20,000 with interest rates between 18% and 30%. The company currently facilitates payments of upto 25,000 merchants and is growing at 30% month over month for the past 18 months.
Rubique: The online market place Rubique offers a wide range of loan products and end to end loan fulfillment to SMEs and individuals. The model of the startup is based on disbursement rather than lead generation which allow the consumer to get the best deal in no time. The portal facilitates disbursal of upto 235 products and has two verticals. It offers a digitized collection of products with various financial institutions.
India’s fintech startup space has seen the growth of startups which has disrupted the traditional banking system and revolutionized the payment industry. With tailored products and instant loans, the business models have become a go to solution for individuals with financial needs.