Over the last few years, FinTech has become the latest buzzword. Simply put FinTech, is a line of business that uses modern technology to provide financial services. These are mainly startups that are founded with the purpose of disrupting incumbent financial institutions. Faircent, India's largest P2P lending company is one of the companies pioneering FinTech in India.

India is offering a dynamic ecosystem for the Fintech startups, which is turning out to be a billion-dollar industry. As per the 2016 FinTech Report released by NASSCOM & KPMG, the Indian Fintech software market itself is forecasted to touch around USD 2.4 billion by 2020 from a current USD 1.2 billion.

The year of 2015 experienced abundant start-ups, incubators and public and private investors. India with its divergent opportunities and government support has helped in the launch of these platform.

Though India’s growth scale may still not be at par with the global counterparts, yet it is well equipped to harness the potential the country carries with it. “FinTech in India has the potential to catch up with its global counterparts as the various ecosystem players come together to orchestrate a much-needed change in the industry. We have the talent and the funding to support this change. The key to success will be the ready adoption by the big banks.” says Neha Punater, Partner, Fintech, KPMG in India.

We bring to you a ready reckoner on the next-generation Fintech themes in India of which Blockchain Technology, Bank in a Box, P2P lending, financial inclusion and Next-Gen payments are gaining attention and are said to carry the financial market in the future. Here is a peek into each.

1.     Blockchain Technology:

Blockchain is a method of recording and updating data in the form of digital ledgers, contracts and agreements. The digitized records are joined together into sets of a block then are lumped together chronologically and cryptographically into a “chain” by using complex mathematical algorithms. Then followed by an encryption process called “hashing” which is carried out by lots of different computers. An agreement by all the computers, every block receives a unique digital signature. This ledger once updated cannot be altered or tampered with, only added to, the information is updated for everyone in the network at the same time. This method reduces the chances of fraud and errors can be spotted easily.

2.     P2P lending:

Peer-to-Peer lending is a practice where, through an online platform the borrowers and lenders are brought together. People who are in need of a personal loan get in touch with the lender on the platform and raise the funds for themselves. In this practice intermediaries like banks, NBFCs etc are eliminated, and lenders can earn higher returns and borrowers can raise personal loans online at a cheaper interest rate. Faircent with more than 30,000 registered borrowers and 6,000 registered lenders, has disbursed more than 8.5 crores through its platform till date, is India’s largest P2P lending company.

3.     Financial Inclusion:

Even after 60 years of Independence a vast section of the society is still - unaware financial products and services. With an aim to inculcate the habit of saving money in Indians, the term ‘Financial Inclusion’ was coined. -  Under Financial Inclusion banks were made to make available basic banking ‘no-frills’ account that  could have a Nil or a min balance. The government of India also announced “the Pradhan Mantri Jan Dhan Yojna” recently, to provide bank accounts to at least 75 million people.

4.     Next-Gen Payments:

For a decade or more Fintech has made efforts in paving its way in adopting the next generation methods of payments in India. Many start-ups have entered this space and have adopted the mobile money transfer method.  With next-gen payments, the even Indian government is keen to adapt and move towards Cashless Bharat vision.

5.     Bank in a Box:

With a vision of new banking formats and central bank regulations to reach the unbanked in India, it is the need of the hour that banks, including the new ones like NBFCs (Non-Banking Financial Companies), to be able to set up their business with right solutions. This is surging India to adopt for the Bank in a Box solution. The key aspects present that with the adoption of these solutions banks can be more nimble in tapping the unbanked segments. Gaining special importance from small co-operative and RRBs in India, this solution has emerged as extremely effective in meeting up with the plans of expansion for different products and segments.

Faircent is part of NASSCOM 10000 startup and is investing heavily to stay on top of the FinTech industry not just in India but globally. We are providing faster and cheper access to credit to borrowers who were earlier under served or denied loans by traditional financial institutions contributing to the goal of financial inclusion. By taking traditionally, document-based, tedious processes like legally-binding signing of loan agreements between borrowers and lender online; and through online payments and repayments directly between borrowers and lenders, Faircent is using technology to make financial transactions faster, smoother and devoid of human interface. So Sign Up now because every % counts!