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The word ‘Fintech’ is a portmanteau of the two terminologies- ‘finance’ and’ technology’. A debt collection fintech company in India is a form of business that utilizes technology to enhance or automate financial processes and services. Traditional financial services went through a radical transformation and emerged as a technology bases business. In the year 2015, the Fintech business witnessed more than 12000 start-ups emerge in their space with a huge investment amounting to USD 19 billion. These companies also collaborate with various research institutions, universities, industries, and government associations. India has created an atmosphere that helps provide opportunities to startups to help them expand and exponentially grow into huge businesses. B2B Fintech Company in India has expanded its sector by involving various segments including foreign markets. Fintech essentially delivers innovation. Indian economy is constantly cash-driven and over the last decade, Fintech Companies in has emerged as a great opportunity for India to expand its business as there are various options available such as insurance, lending, e-wallets, etc.


Fintech is based on collaboration with other agencies and the integration of various innovations. This platform enables the exchanging of ideas, coming up with various strategies and building networks. There are 3 important stakeholders in the Fintech sector:

  1. Government

The government along with regulators like the central bank and the Securities Exchange Board of India (SEBI) extend all their support to Fintech companies. This was done with the objective of achieving a cashless economy in the near future. The ‘Start-up India’ initiative was launched in 2016, the government envisions to build a strong ecosystem for start-ups in the country in order to promote innovation, and generate large-scale employment opportunities and drive sustainable economic growth. To further aid start-ups, the government helped by providing tax relief. This included income tax exemption for the first 3 years for start-ups, a credit guarantee mechanism, and other exemptions.

  1. Universities and research Institutions

Academic bodies aid in shaping the mindset of prospective entrepreneurs. Leading institutions and universities in India are playing a dynamic and driven role by organizing various events, courses, competitions, etc. IIT Roorkee had organized the Global Entrepreneur Conclave in order to enhance entrepreneurial skills and recognize those students who had potential and exemplary skills in technology-related fields.

  1. Start-ups

The start-up Fintech space is not just limited to mobile wallets. Presently, India has over 600 start-ups in Fintech that belong to various segments and the number of these start-ups are predicted to accelerate. Additionally, support through funding is provided by leading corporates and the start-ups are undergoing a huge makeover.

  1. Users

The customers, in the form of both individuals and organizations, have impressively accepted the transition of India’s economy being technology-driven. They have aimed and envisioned a cashless and mobile banking economy.

  1. Incubators and Accelerators

This is an important component of the Fintech ecosystem. The role of incubators and accelerators not only helps in funding, but they also help strengthen the financial industry and enhance soft skills. Financial institutions perform a key role by helping discover new talent and platforms and institutions.

  1. Financial Institutions

The fast-paced country has uplifted the emergence of the Fintech sector, various BFSIs are collaborating with Fintech start-ups on a variety of platforms such as wallets and online client acquisition, among others. They aid by supporting, mentoring, and investing in innovative start-ups.


The Reserve Bank of India(RBI) framed a set of guidelines in the year 2014 and relaxed the rule of undergoing a KYC process. This enabled the customers to download a wallet and use it for various services like paying bills, booking tickets, etc. In the year 2016, the government came out with a consultation paper that categorizes peer to peer lending as a Non-Banking Financial Company. This was introduced with an aim to bring the borrower and lender to a common platform.


Various factors have contributed to making and developing the Fintech ecosystem in India a huge success. With India aiming to become more digital, the number of people using the internet gradually increased and is still increasing. Fintech start-ups grabbed opportunities that were offered when the nation was trying to become ‘Digital India’. Significant growth has been observed in capital investments, entrepreneurial mindset and government policies make this an emerging and growing industry now.

Article By : Dhanya S Krishnan

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