Despite the global market slow-down owing to the recent outbreak of the COVID-19 pandemic, the Indian fin-tech sector has done exceedingly well this past quarter. The continued investments in this space are important for a developing economy to augment pan-India financial integration and inclusion. In addition to developing innovative products to cater to marginalised sections of the population, fin-tech enterprises have also been increasingly bundling their services with banks to rely on the latter's distribution and strong payment networks. This shows the evolving relationship between banks and fin-tech entities, which is no longer just competitive, but is also focused on leveraging synergies.
The social distancing measures being encouraged because of the pandemic have led to a significant increase in the number of users transacting on digital payment applications and using online banking services. According to the Global Real-Time Payments Report released by ACI Worldwide1 ("ACI Worldwide Report"), more people, governments and businesses are embracing digital payments in this crisis. Reports indicate that fin-tech applications and several banks have witnessed more than double the usual registrations for their online services during this period of social distancing.2 This transition is likely to change the overall behavioural pattern of users in the Indian economy, with more people continuing to use and trust digital financial services once the crisis is over as well, resulting in long term benefits for the fin-tech industry.
This newsletter highlights the key developments in the Indian fin-tech space from January 16, 2020 to April 30, 2020.
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Footnotes
Originally published January 16, 2020 - April 30, 2020
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