Why the FinTech industry soared despite the pandemic?

The last one year and a half hasn't been promising for any of us. Irrespective of how developed the country is, the pandemic left a blow to an extent that goes way beyond expectations. Right from a series of lockdowns, quarantine protocols, isolation, to the collapse of businesses, we have seen them all. Every sector that one can possibly think of has been affected in numerous ways – many to the extent that they are still struggling to come to terms with the reality. In the midst of all this, one sector that has managed to garner attention from every corner for witnessing immense growth and continues to develop is that of the financial sector.

Ever since the demonetization rocked India, the shift towards digital payments comes as no big a surprise. Owing to the pandemic and the social distancing forms that followed, the contactless digital payment system in India boosted beyond expectations. Well, the country taking every possible effort to promote digital payments is yet another reason as to why the Indian FinTech industry is bound to see soaring demand in the years to come. Out of the many digital transaction mediums that people are now getting accustomed to, UPI, NEFT, IMPS, etc. have remained at the top. These methods being simple, fast and convenient have gained the trust of the people, which is why the inclination of them towards these methods of digital payments makes sense.

With a couple of restrictions (social distancing, quarantine, etc.) put forth by the Government especially during the lockdown period has made people all the more reliant on online methods, be it in the form of paying bills, buying things, or even making transactions for that matter. The number of people who shifted to e-commerce for a wide range of requirements paved the way for soaring digital payments. It was during this time that the country witnessed a lot of start-ups that focused on digital ways to meet the objective. Needless to say, they turned out to be a hit among the target audience and received good appreciation for the same.

Yet another aspect of FinTech industry that has managed to grab eyeballs is the fact that this industry has received jaw-dropping investments from investors across the globe. Seeing the amount poured in by the investors, the FinTech companies are leaving no stone unturned in bringing innovations. Digital lending is something that most of the FinTech companies are into and considering the current situation of the world as a result of the pandemic, this concept is on its way of becoming a sure-shot hit.

The last couple of years saw many FinTech companies entering the industry in India. Despite the pandemic, this industry has faired pretty well on all fronts. The significant growth of the FinTech industry in India is mainly because of –

• Diverse capital flow
• Our deep-rooted customer demand
• Well-laid policy framework
• Strong technical talent

A blend of all the above factors has resulted in a strong foundation of FinTech companies in the country. Since all these factors are bound to stay, the coming years would be no less than a blessing for all the FinTech companies. Simply put, this industry is expected to continue an upward trajectory. One thing is for sure – the pandemic has forced everyone to go digital in the least amount of time that one can think of. However, people are slowly and steadily moving towards accepting this reality which is why this FinTech industry holds the potential of growing rapidly in the years to come