The Digital Wave in the Indian Economy
2020 has changed the face of economies and global business systems. A year ago, nobody could have imagined a completely virtual world where businesses, offices, governments, and almost every aspect of daily life has gone digital.
Today, digitization has penetrated every walk of life. It is no longer a mere enabler of business. It has become central to business functioning and plays a pivotal role in the success of any business.
Here are some ways in which digital transformation is revolutionizing our world today:
- Perpetual Availability:
With the advent of online banking, the concept of ‘banking hours’ has become completely old school. From mobile wallets to UPI payments, FinTech has enabled 24×7 banking hours. The freedom of perpetual availability, which was earlier restricted to major cities, has now become available to the smallest of towns and villages. Digital payment apps like Paytm, PhonePe, BHIM have penetrated micro-markets and enabled a revolution in the banking industry. Even in the borrowing space, some useful personal loan apps like MoneyTap are gaining popularity for quick response in approvals and user-friendliness.
- Quicker Online Banking Transactions:
Visiting banks were considered the most cumbersome job, with long queues, hassled personnel to deal with, and excessive waste of time. With innovation in fintech and internet banking advances, most banks now have seamless, secure mobile apps that allow customers to complete all their banking transactions with a single click.
- Instant & Hassle-Free Loans:
Securing loans has always been considered a tedious process with lengthy paperwork involved. New-age fintech companies have enabled consumers to access a personal line of credit with easy and hassle-free apps. Instead of opting for expensive credit forms, consumers now have the privilege of accessing credit at lower rates of interest and easy repayment mechanisms. This has dramatically helped the strata of the population on the edge of the credit market to access personal finance options.
- Improved Data Security:
The initial years of the fintech industry were perceived with much skepticism. Consumers were wary about using online banking systems because of the risks involved and the existence of fraudulent practices. With experience and constant persistent, the industry has matured to a stage where every financial institution is investing heavily in consumer data security. From law and policymakers to banks and financial institutions to fintech startups, every entity is making efforts for stringent security measures and winning their consumers’ trust.
Before demonetisation, the concept of e-wallets was a complete novelty. But as time progressed, the Indian customer has become much more comfortable in using e-wallets. From the local chai-wala to big supermarkets, e-wallet companies have successfully penetrated a significant consumer market segment. Moreover, the pandemic situation has given further impetus to this market. And we can expect that a completely cashless economy is the obvious way forward for the country.
In conclusion, we can see that fintech is no longer an ancillary function of our modern-day business. It is slowly and steadily becoming the heart of our business. And the more wholeheartedly we welcome the digital revolution, the more significant opportunities it offers to expand and to unlock new growth opportunities.
This is a guest post from Shiv Nanda