According to the Finance Minister recently, India’s (FinTech) Financial technology adoption Rate at the global level is 87% as compared to 64%.
- The Finance Minister, during his address at the Global Financial technology adoption Fest 2021, mentioned the fact that currently India has emerged as a major destination for digital activities and digital payments.
- Fintech is an umbrella term that refers to technological innovation affecting financial services.
- In India, fintech can provide a practical solution to the problems faced by traditional financial institutions such as limited penetration, inadequate credit history and cash driven transaction economy.
- The Indian fintech market is currently valued at $31 billion. It is expected to reach $84 billion by the year 2025.
For example: Peer to Peer (P2P) lending platforms, crowd funding, block chain technology, Bigdata, e-aggregators, etc.
Drivers of Fintech Growth in India: High volume financing, Open Application Programming Interface platform i.e. Aadhaar, Unified Payments Interface (UPI), Implementation of innovative Artificial Intelligence (AI) driven business model, High number of cellphone and Internet users etc.
On this occasion, the Finance Minister has also released a report on United Nations Principles for Responsible Digital Payments. This report outlines guiding principles for government, users, and industry and businesses.
The following principles are outlined under this report: Ensuring that funding is safe and accessible to all users, ensuring women are given priority and equality in the digitization process, protecting customer data, etc.
Source – The Hindu