COVID-19 HAS fundamentally changed the way we live and work, including the way we access financial products. FinTech in India was well-positioned to deliver financial products and services in a contactless and non- face-to-face format, thus solved one of the key risks of Covid-19. Digital payments saw a big growth in 2020 when consumers were trying to minimise the handling of cash. The switch that many consumers have made to digital payments will to a large extent be a permanent one given the ease and convenience of transacting digitally. Digital lending products have focussed primarily on the retail, SME and MSME sectors giving credit and liquidity to many of these borrowers facing stress on account of disruptions in businesses and income. Digital loan platforms use technology and tools including artificial intelligence and big data analytics to understand and price credit risk. Budget 2021 is expected to stress on the importance of technology for delivery of financial services. FinTech is ready for its next phase of growth and is looking towards the Budget for the incentives and support that is needed to power this growth. Key budget expectations are:
This article was originally published in Business World on 28 January 2021 Written by: Shilpa Mankar Ahluwalia, Partner. Click here for original article
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