How fintechs are making the finance ecosystem more sustainable
Access to funds as required goes a long way in ensuring development and empowerment for the people in India who have traditionally faced exclusion and lack of upliftment opportunities. Fintech disruptors are helping expand access to on-time capital while also furthering the cause of sustainability, a concern and a discourse that is taking over industries across the globe.
Customers, especially the younger generations are also increasingly favoring brands that are socially responsible and advocate the right thing to do not just for profits but also for the people and the planet. When we say fintech are making the whole ecosystem more sustainable we mean not only from the angle of business and customer viability, for which there are already several cases in point but also from environmental considerations, which benefit everyone.
The interconnectedness between sustainability, finance, and technology can be evidenced by the pandemic, which compelled industries across the world to re-think value creation models traditionally deployed and rely more on technology and sustainability. The focus now is on you, the customer. Being closer to the customer, serving you where you are, and how you need to be served is more important for business sustainability.
Most of India’s infrastructure is not fit for distributing value across the length and breadth of the country. In this regard, fintechs play a key role in digitally transferring value to different places. For them, it’s all about enabling the bringing of people and products into the financial mainstream and closer to the customer, respectively, in ways that weren’t possible before. It has thus not only leveled the playing field but also found a way to minimize the wastefulness in the practices of the industry.
Being lean and green
Fintech refers to firms that bring together financial services with innovative technologies to offer bespoke financial services. This new-age fintech in the market offer internet-based and application-oriented products. These companies are steadily grabbing market share by giving the customers what they want with products and services that are user-friendly, efficient, transparent, and automated a far cry from the existing ones.
FinTechs are being considered as a gamechanger for their critical innovations in the financial industry, which are also evolving at a rapid speed, driven by the focus on shared growth (people + profits), circular economy (read the article to understand the concept better), favorable regulations protecting customer interests, and information technology.
They are quickly reshaping the financial industry by cutting costs, improving the quality of financial services, and creating a financial landscape that is diverse and stable. Fintechs are continuously fostering tech innovation in financial services, resulting in new business models, applications, processes, or products with a material effect on financial markets and institutions.
FinTechs are filling key financial inclusion gaps by providing financial services which have long excluded the Bottom of the Pyramid, unbanked people, enabled by information and communications technologies (ICT) and new business models.
FinTech business models have enabled the removal of traditional barriers of the financial sector.. Fintech disruptors are emerging as the key drivers of financial inclusion, and sustainable balanced development, as outlined in the UN Sustainable Development Goals which are a set of 17 targets to create a sustainable world by 2030, which fintech is supporting by bringing digital financial transformation at scale and speed to the discerning customers of India.
The bottom line
Fintech companies like SmartCoin operate in an intangible way, through e-finance, advanced technology, social networking, and big data analytics. They are more scalable than traditional banks. The leveling effect of fintech includes bringing financial services to a bigger proportion of the Indian population, enabling smaller businesses to access funds instantly, and channeling capital towards transforming finance practices for the evolving needs of the customer.