India’s FinTech Revolution: Emerging FinTech Startups

Mint FinTech Summit 2016: India's FinTech Revolution

The mounting collaboration between technology and finance has fired the imagination of entrepreneurs to come up with innovative ideas, thereby escalating the scope of India’s tech startups. According to a report by Nasscom, there are close to 400 companies in India which are focused on the fin-tech market globally.

So, here are a few emerging FinTech start-ups from India that were showcased in the Mint FinTech Summit 2016:

• Active.Ai (Active Intelligence Pte Ltd)

Active.Ai, founded in 2016 is a platform that offers Chat Bots for large banks to interact with their customers in the format that they’re most contented with. The more customers interact with the application, the more the Artificial Intelligence behind it, learn about them and offer personalized advice and service, increasing engagement as well as loyalty of the customers. The use cases range from getting the balance in the account to transferring money to friends and paying bills. The bot can be integrated via various utility channels, including Wechat, LINE, Kakao Talk, Facebook Messenger, Amazon Echo and Siri.

Active.Ai

•  Hummingbill (Hummingbill Technologies India Pvt. Ltd)

Hummingbill (2015) accounts receivable software for small businesses to help them automate receivables. One of the biggest problems faced by small businesses is of not receiving their payments on time, often due to clerical errors or logistics issues. Hummingbill hopes to help them overcome this with a simple tool for financial officers and accountants. Its software works as a plug-in for Gmail enabling businesses to create invoices and track them. It also allows one to mechanize payment reminders as well as track the collection routine of sales representatives and account managers.

HummingBill Technologies

• mymoneysage.in (Shreem Datatech Solutions Pvt. Ltd)

This start-up from 2015, offers Cloud-based Money Management software for individuals as well as financial advisers. Individuals can not only add their bank accounts, investment accounts, insurance accounts, rather get actionable advice from experts. For advisers, this works like a customer relationship management software where they can create and manage tasks, offers SMS and e-mail reminders about client and prospect meetings and a dashboard where they can manage all their client data in one place. It also helps them get more visibility in a marketplace it offers and at the same time acquire new clients.

mymoneysage.in

• Tauro Wealth (Tauro Investment Advisors Pvt. Ltd)

Tauro Wealth is a robo advisory start-up founded in 2015, targeting individuals who are confused and intimidated by the stock markets. It tries to make it simple for them to invest in a stock portfolio by offering, individuals a primer on understanding what stock investing is about and making them aware of the risks involved. Tauro Wealth generates portfolios using proprietary algorithms to minimize manual intervention and remove human errors or personal biases. Tauro Wealth’s investment portfolios are built to achieve a mix of passive and active investment strategies.

Tauro Wealth

• fonePaisa (fonePaisa Payment Solutions Pvt. Ltd)

FonePaisa, founded in 2014 offers multiple payments solutions. For an individual, it offers a wallet that aggregates the most popular payment options, including other wallets, enabling them to carry out transactions at various retailers and pay their utilities’ bills. For merchants, it offers a payment gateway to accept payments, and also offers them software to create loyalty programmes, targeted marketing campaign, and show merchants a consolidated reporting and monitoring dashboard. FonePaisa also offers businesses accounts receivable software that automates matching payments to invoices, eliminates manual processes while reducing the costs.

FonePaisa

These were the few startups in the Indian FinTech Sector. Look out for more in our next blog.

Watch the events’ webcast where experts discussed on ‘Regulations that make it conducive for FinTech’ at Mint FinTech presented by Capital First which took place on 30^th June, 2016 in Bangalore.

Know about the other Startups showcased in Mint FinTech Summit 2016, by clicking on the following link:

mintevents5.blogspot.in/2016/07/indias-fintech-revolution-emerging_13.html

India’s FinTech Revolution: Challenging Traditional ways of Banking

India's FinTech Revolution: Challenging Traditional ways of Banking

As consumers’ trust in the banking system begins to reduce, a growing number of financial technology startups are ready to steal away up to $4.7 trillion worth of business. In the year 2014 the global investment of FinTech companies tripled to more than $ 12 billion. This trend continued in 2015 when more than $ 10 billion were invested within the first three quarters and not to miss, 2016 continuing at the same pace.

Growth of FinTech Ecosystem in India

Big companies across various sectors are stepping up open-innovation collaborations with small high-tech ones across the world. The number of FinTech partnerships forged by big banks, multiplied threefold globally throughout the years 2009-2015.

An Accenture survey of executives which included 205 large companies and 201 small high-tech firms based in China, India and the US. It disclosed that 92% respondents from the big companies believe in open innovation with small high-tech firms for the propose of accelerating new product development.

However, more than 70% respondents from the small high-tech firms expressed enthusiasm to take advantage of such collaborations to meet important goals like gaining new insights and experiences that could help them develop.

Technology is changing the way people transact and do banking operations. Numerous startups in the FinTech space, backed by venture financing are unsettling the financial services as well as banking industry. With the increasing internet penetration in our country, more and more people have started to buy things online and using digital wallet services to make payments. A report by Nasscom concluded that e-commerce and retail verticals are leading the adoption of FinTech and the industry is anticipated to grow extensively in the coming years.

Use of Digital Wallets Services to make Payments

These upcoming companies are focused on building financial products, developing innovations that include peer-to-peer lending platforms and creating friction-less payment and trading solutions. In India, the rise of the connected devices especially the smart phones has led to the incubation and growth of startups in the FinTech sector. TransferWise is a London-based peer-to-peer money wire platform which is, at present processing as much as $750 million in personal global transfers each month.

TransferWise: London Based Peer-to-Peer Money Wire Platform

Additionally, the global fin-tech industry is a $45 billion opportunity by 2020 growing at a compounded annual growth rate of 7.1 per cent. Significantly, the Indian fin-tech industry is expected to grow by 1.7 s by 2020. At present the total Indian fin-tech market is about $8 billion with fin-tech software market at $1.2 billion with over 750 FinTech companies in India.

Predicted Market Value of FinTech Industry by 2018

The FinTech sector is becoming more competitive with several startups being imaginative on the way to satisfy the same needs in a better way. With the banking sector always at the forefront of technology adoption the necessity to tap fin-tech start-ups also arises as they need to be fast at adopting the new changes. The manner in which technology has been evolving, a conventional retail bank will have to adapt to the digital highway to remain efficient while capturing the new business value at the same time.

Today, there is a blurring line of difference between a conventional retail bank and technology companies. The whole system of payment gateway has opened up completely new opportunity for technology companies. With such opportunities comes a great sense of regulating the activities and performances of the FinTech industry. A survey of financial technology founders and investors released by Silicon Valley Bank identified regulation to curb as the impediments to growth.

Workings of Payment Gateways

Watch the events’ webcast where experts discussed on ‘Regulations that make it conducive for FinTech’ at Mint FinTech presented by Capital First which took place on 30^th June, 2016 in Bangalore.