Indian FinTech Industry On An Innovation Spree
India’s Fintech sector is on the path of innovation and growth and is driven by innovstive companies constantly looking for enhanced customer experiences. A Bengaluru-based startup, MoneyTap, has launched an app-based credit line facility. With the help of this app, consumers can borrow from as little as Rs 3000 to Rs 5 lakh and repay it as EMIs from 2 months to 3 years. The interest is paid only on the amount borrowed and the rates can be as low as 1.25% per month. The limit also gets automatically replenished as soon EMIs are paid back.. The startup promises to process credit application in a matter of minutes
MoneyTap has launched the services in partnership with their banking partner, the RBL Bank. The bank’s technology infrastructure enables MoneyTap to provide instant decision and instant access to money, 24/7, irrespective of even the holidays. Though all actions are initiated on the MoneyTap app itself, according to RBI guidelines, all financial transactions such as billing, repayment or withdrawals will directly be with the bank using secure APIs. As an added convenience for shopping needs, a ‘MoneyTap RBL Credit Card’ is also provided for the user. This is a regular MasterCard Credit Card, that is accepted at all locations and for all card purchases, offline and online.
Bala Parthasarathy, the CEO and Co-Founder of MoneyTap explained the inspiration behind the concept, “Growing up in India in the Eighties and Nineties, and coming from middle-income group families, we have all faced shortage of additional funds at some point. At MoneyTap, we are on a mission to change this and make credit accessible to those who deserve it.
The ubiquitous presence of smartphones and initiatives such as Aadhaar has made it possible for us to develop a truly powerful and disruptive financial instrument, believes Parthasarathy.
Companies like MoneyTap is changing India’s FinTech landscape that is poised for the long haul journey, and there are big changes on the cards. According to a report by the ACCA (Association of Chartered Certified Accountants), the current regulatory challenges are actually the opportunities for global Fintech majors, to establish themselves in India as a centre for Global Finance.
According to a 2016 KPMG report, India has indeed been backing up its FinTech related enterprises, whereby Venture Capitalists pumped-in $1.5 billion into the segment in 2015, which is still remains behind China’s investment of $2.7 billion in the same year.
The report points out to certain broad and prominent facts:
- For professional accountants, helping companies manage the regulatory, tax and financial implications of the FinTech surge offers considerable opportunity.
- FinTech start-ups span the spectrum of financial services, from lending and advice to foreign exchange and payments. One aspect that many of them share is strong growth.
- FinTech is changing not only how banks operate, but also the way people invest Cryptocurrencies such as bitcoin presage deeper disruption.
- Some commentators believe the banks are finished, while others see this as their chance to fight back.
ACCA Head of Development Mohammed Sajid Khan summarized the current challenges in a nutshell, that decision makers in related firms could pick up on, to make efforts in the right direction. He said, “While FinTech opens a range of possibilities for business, from new banks to streamlining payments and lending, and exploiting these opportunities will require adaptation from firms as well. We are already seeing a burgeoning ‘RegTech’ (Regulation Technology) sector which can use automation and data-analysis to provide intelligent, low-cost solutions to streamline this process. Understanding the intricacies of global best practices and adapting them for varying national contexts can set aspiring FinTech hubs on a course for success.”
He noted that accountants with a more global skill set, will make a stronger mark in the world of FinTech and RegTech, which are the future avenues of the industry. The global competition in these areas have greater potential than just for Silicon Plateau’s technology centre in Bangalore. Whether it is reducing the costs of international trade for Indian businesses or making it easier for global companies to use India as a geographical hub, technology adoption will also necessitate transformations in tax compliance, audit and reporting processes.
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