What Is Fintech Startup And Why It Is Currently Booming Sector In India?

In recent times, most of you definitely heard about the fintech startup a lot but what actually fintech means?. Fintech is a combination of finance and technology and refers to an incredible exiting finance handing companies that looking to revolutionize the financial world by using the latest technology AI, Blockchain, Data Science and Machine learning more efficiently and creating more people-focused products. The main aim is to replace the traditional method of financing to fully technology-based. India’s adoption rate for fintech products stands at 59%, which is the second-highest pace worldwide.

What Fintech Companies Do?

Fintech companies are the ones who bring advanced technology to the world of banking and finance transactions and disrupt the traditional method of transaction. Fintech technology is applied for innovation in the online money transaction. Since the internet revolution or the most important Jio revolution, mobile internet penetration has increased in large numbers as well as financial technology has grown explosively.

Fintech apps are changing the way banks interact with their customers. Fintech applications range from mobile payments to budgeting and are very versatile. The most common categories are personal loans, automatic investment, credit monitoring, budgeting, payment processing, and cryptocurrency transactions. Fintech startups offering financial services to the companies in order to improve there use and delivery to the customers.

Types Of Fintech Startups

Fintech is a dynamic and vast field. Over the past few decades, we have seen Fintech's recurring field spanning many various financial and banking domains. Some of the major fintech startup categories are

• Lending.
• Insurence.
• International Money Transfers.
• Crowdfunding.
• Personal Finance.
• Cryptocurrency.
• Payments.

Lending : 

This is the major category of fintech startup ecosystem and the main direction to build the Fintech software. These allow the customer to lend the money from the financial companies in an automated and accelerated way. Customers no need to go for a traditional way by applying in banks and credit unions.

Insurance :

Most of the finance companies are adopting the fintech app to reach new customers and make the process smo0ther and better customer experience. Insurtech companies use artificial intelligence, machine learning, Data science and other digital services for automation and faster insurance calculation.

Payment :

The biggest fin-tech category is an online payment. Fintech companies allow users to send money in a fraction of time other than the traditional bank method. Most of the famous app in India are Phonepe, Paytm, Google pay and many more.

CrowdFunding :

There are different types of crowding funding rewards-based crowdfunding, donation-based crowdfunding, and equity-based crowdfunding. Crowdfunding is a valuable business to raise start up venture capital. As one of the fintech areas to invest in, this trend is also gaining momentum in India. Globally, crowd finance fintech's growth potential is $16.2 billion.

Cryptocurrency :

Cryptocurrency is Fintech's nascent and rapidly growing field. Those with the right investment awareness can engage quickly in this area to make money.

Some Of The Top Fintech Startup In India

There are more than 2000 fintech startups in differ in India and its growing explosively. Among the leading payment fintech startups in India which are performing well in India are Phonepe, Google Pay, Billdesk and Paytm. Insurance companies are Policy Bazaar, Bank Bazaar, bima and many more. Lending companies are LendingKart, InCred Finance, Kissht, Shubh Loans, and Capital Float.

Future Of Fintech Startups In India

There are thousands of fintech startup in India and the number is growing constantly. According to the recent report, India has achieved the second spot in the largest number of fintech startups. According to a BCG survey, India's online lending industry is set to grow rapidly with potential market size of $100 billion by 2023. NASSCOM forecasts that fintech companies revenue generated in India will hit $2.4 billion by 2020. Fintech investments are also increasing significantly due to the reforms initiated by the Reserve Bank of India and the Government of India, making the Indian fintech growth market more digital and user-friendly.