Need of FinTech companies to navigate the undergoing COVID-19 pandemic in India

Over the last decade, India has succeeded in building a robust low-cost digital payments market. The government, too, has leveraged this infrastructure to transfer money to more than 33 crore people as part of its Covid-19 relief package. However, there are still villages where we will not even hear of villages where ATM services are available. In such a situation, it is very difficult for the backward to visit banks for all their needs. Especially amidst the COVID scare and social distancing norms applicable, it is even harder. Hence, we need to pave the way for FinTech companies in the country to assist the underserved in their daily banking activities.

Here are 4 reasons why FinTech is important:

1. The combination of finance and technology has been helping the world for very long. Thus, financial institutions have a long history of adopting new technologies - ATMs, credit cards and chip and pin were once the new radicals. However, FinTech is revolutionising the shape and delivery of financial services on a much bigger scale. Especially due to COVID-19, people find it easy to pay using technology than cash payments.

2. Further, Technology and data make it much easier and cheaper to bring investment advice to the masses. Thus, while we battle the pandemic, we can easily ensure that our assets are safeguarded.

3. When it comes to mobile payments, the innovations aren’t only happening in the front end. It is also happening behind the scenes. There are those FinTechs that started out providing consumers with a better way to make payments. They are also morphed into a business-to-business (B2B) play, helping web sites power their payment features.

4. Insurance is a necessary evil. Evil, because for some, the process to get coverage can be too arduous. But now, a handful of startups are aiming to change that. They are upping customer service and reducing costs. And during this pandemic, health insurance is a principal need for everyone.

Here are some FinTech companies changing the current scenario:

Paytm

Paytm Payments Bank has recently launched a DBT (Direct Benefits Transfer) facility. Through this, customers can receive the benefits of over 400 government subsidies directly into their PPBL Savings Account. The bank has now implemented the option to avail benefits of Direct Benefit Transfers (DBT), which is a scheme by Government of India to transfer the subsidies of various social welfare schemes like LPG gas subsidy, MNREGA payments, Old Age Pension, Scholarships directly into the beneficiary’s bank account.

CoinTab

Cointab is a mobile app which enables you to manage your money with ease – add bank accounts from 90+ banks and easily check account balance, transfer money to friends & family in real-time and request money from them. You can pay your credit card bills in real-time, recharge of your mobile/DTH, and pay all of your utility bills from any of your bank accounts. You can easily view your Employee Provident Fund (EPF) data, balance, passbook. Its a simple and convenient way of banking

BANKIT

BANKIT is a business correspondent to various Banks. It partners with leading service aggregators for fast, simple and secure transactions. The FinTech company in the last 2 months has assisted several of people residing in rural, semi-urban and semi-rural areas. They have done this via their network vast network 15000+ agents across 26 states. BANKIT is serving the vulnerable community with a means to access the money in their account for daily activities by providing them cash via their AePS and Micro ATMs portfolio as well as cash at home service.

Udaan

Former Flipkart senior executives Sujeet Kumar, Vaibhav Gupta, and Amod Malviya launched Udaan. This FinTech connects small or medium-sized businesses (SMBs), manufacturers, wholesalers, traders, and retailers to sell goods and services to each other. The company also offers other services such as credit financing and logistics to connect manufacturers with retailers. Udaan is joining the brigade of UPI payments app with its QR-code based digital payments for retail outlets, restaurants and merchants.

From moving towards self-reliance through digitalisation to technological innovation, fintech players can create new opportunities during the COVID-19 lockdown by leveraging unique assets and developing skills.