The Mint FinTech Summit- India’s FinTech Revolution

2015 was a prelude to transformation in the lending, payments as well as personal finance space due to the pace at which financial technology companies emerged in India. The emergence of new technologies such as cloud-based systems and bio-metric recognition have changed the face of payments. Event the year 2016 continued with the same pace.

Mint put together a high-powered business conclave which brought together industry experts, regulators, FinTech, bureaucrats’ startups who discussed various issues that are an obstacle in building a favorable environment for the FinTech Industry.

V. Vaidyanathan, Founder and Chairman: Capital First

“As all of these are gradually moving to the E-World, the eco system is changing, new market flow is opening up, and new profit pools are opening up and with this context suddenly the game does open up for collaborations and not for confrontation.” - V. Vaidyanathan, Founder & Chairman, Capital First

India’s FinTech sector may be young but is on the rise rapidly, fueled by a large market base, an innovation-driven startup landscape, along with government policies and regulations. Several startups populate this emerging and dynamic sector, while both traditional banking institutions and non-banking financial companies are trying to catch up. The Opportunities and Challenges in the India FinTech stack was discussed in a presentation by Sharad Sharma from iSPIRIT.

Sharad Sharma, Co-Founder and Governing Council Member: iSPIRIT

“If there at all is a golden rule when it comes to banking then it is, Thou shall the bank, shall not debit my account without my permission” - Sharad Sharma Co-founder and Governing Council Member, iSPIRT

T.R. Ramachandran, Group Country Manager: India and South Asia at Visa

“One word which all of you will hear more and more and more and it’s important that you understand it is the notion of tokenization. This is one big thing changing payments without adding to the clumsiness.” - T.R. Ramachandran, Group Country Manager -India & South Asia at Visa

Financial technology has changed the way industry practitioners, consumers, and policymakers think about innovation in the financial sector. Blockchain technology is making financial transactions open and transparent, crypto currencies are changing the way we think about money, and real-time payments systems are slashing down the costs of credit inter-mediation. FinTech has offered an impressive array of opportunities for economic growth.  The ways to Strike balance in Innovations and Regulations in the FinTech sector was discussed at Mint FinTech Summit in conversation with Lowell Campbell and Monish Shah.

In Conversation with Lowell Campbell and Monish Shah on FinTech: Balancing Innovations and Regulations

“People are trying to problem a solution rather than solution a problem.” - Lowell Campbell, Principal Global Specialist, Digital Financial Services, IFC (World Bank group)

“We have sent the customers into this big wide world, told them to go and transact somewhere over there and it’s not happening so well.” - Monish Shah, Partner, Deloitte

Kevin Wu, CTO: Data Center Solutions, South-East Asia, Huawei

“If you build a city as smart as possible, I guess the Financial Services actually cannot be left out.” - Kevin Wu, CTO, Data Center Solutions, South-East Asia, Huawei

The event even included an informative Panel discussion on How to Spot and Nurture FinTech Startups with Bala Srinivasa, Nikhil Balaraman and Shailesh Lakhani as the panelists.

Panel Discussion on How to Spot and Nurture FinTech Startups with Bala Srinivasa, Nikhil Balaraman and Shailesh Lakhani as the panelists

“FinTech in India is pretty different. There’s a whole not to disrupt but there’s a whole lot to create. So I don’t view it as FinTech disruption, its more in terms of what can you create using technology.” - Bala Srinivasa, Partner, Kalaari Capital

“You’re dealing with someone else’s money, you’re not selling a product you’re selling a service where someone in the system, either a lender or a consumer in the case of wealth needs to trust you with their money.” - Nikhil Balaraman, Partner, Orios Ventures

“Regulations and new initiatives by government are both welcomed and feared at the same time.” - Shailesh Lakhani, Partner, Sequoia Ventures

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 various startups showcased at Mint FinTech Summit 2016 by clicking at the following link:

https://minteventsblog.wordpress.com/2016/07/13/indias-fintech-revolution-emerging-fintech-startups-2/

https://minteventsblog.wordpress.com/2016/07/12/indias-fintech-revolution-emerging-fintech-startups/

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.