The Fintech sector is known for its fast-paced and dynamic nature.Every year, the sector maintains its financial edge by incorporating some of the most cutting-edge approaches and vigorously changes itself in the due process. The year 2018 hasn’t been much different for the Fintech sector. Here are some major trends witnessed in the fintech space in 2018:
• Crypto Ban Jitters went down the spine of several cryptocurrency marketplaces and traders following an RBI order in early-2018. The order barred all Indian banks from dealing with cryptocurrency exchanges and related firms in a stipulated time. It prevented a majority of dealers to enter the seemingly ‘ripe’ cryptocurrency domain. Thankfully, this happened right before cryptocurrency market size nearly halved and wiped out more than $200 billion in the following two months. There are still a few cryptocurrency players actively operating in India, however, their prospects are very thin following clampdown by the regulatory.
• Banks and Fintech go hand in hand: Using their trailblazing approach, Indian fintech platforms have proven themselves effective in solving some of the most demanding financial challenges that our country faces. Now, since traditional banks have been late movers into space, such fintech platforms are also transferring their technological expertise to the Indian banking sector. Several traditional banks in India have lately been joining hands with fintech platforms and are now leveraging their backend solutions. The areas of the association include process automation, customer acquisition, customer retention, credit profiling, loan disbursements, etc.
• The Gradual Progression of Mobile Wallets: Mobile wallets, in their most basic form, add limited value to a person – especially with other payment alternatives such as UPI, AePS, etc. becoming more popular. In order to stay relevant to customers, the shift towards incorporating more day-to-day, customer-centric uses have been observed amongst mobile wallets including the ones offered by cab-aggregators and e-commerce platforms.