With the markdown of valuations in start-ups last year, many fintech start-ups are now resorting to creating new market and products. As it shall be a faraway vision for these fintech firms to be earmarked as “venture capitalists”, they need to invest more in solving real world problems rather than merely addressing new problems.
As per the reports published by NASSCOM, the Indian fintech software market is expected to touch $2.4 billion by 2020 from the current $1.2 billion. The transaction value for the Indian fintech sector is estimated to be approximately $33 billion in 2016 and is expected to reach $73 billion in 2020, growing at a five-year compound annual rate of 22%, according to a report on fintech by KPMG. The growth in smart-phones usages and consumers’ willingness to transact online have spiked up a large number of start-ups, all trying to take advantage of this opportunity.
Fintech investment in India rose from $247 million in 2014 to more than $1.5 billion in 2015, with the likes of Paytm, Freecharge and Mobikwik accounting for the lion’s share.Although there has been a spurt in the rise of number of start-ups, most of the start-ups are following the established models of lending businesses.Online GST Certification Course by TaxGuru & MSME- Click here to Join
However, for the fintech start-ups to survive in Indian scenario, they should ideally create new and differential products. The diversity in the product offering of these fintech start-ups will justify the statistics published by NASSCOM. As major chunk of these financial start-ups concentrates mainly on the addressing technology problems, the real world problems need a separate focus. A dedicated approach shall also lay on the expansion of services like banks and other financial institutions.
What can be concluded is that, facilitating only the online lending business transactions by these fintech companies shall not achieve the goal of creating a niche in the start-up industry. It must also borne in mind that investors are yet to be optimally satisfied with the fintech services.
 Read more at: http://www.livemint.com/Industry/UsuIPGy32wBCv0PZj7PeVP/Emerging-fintech-startups-from-India-that-are- making-a-mark.html
 Read more at: https://home.kpmg.com/in/en/home/media/press-releases/2016/06/the-indian-fintech-software-sector.html
 Read more at : http://www.livemint.com/Companies/qVnlTGRayvEnGQjNIciH0O/The-way-ahead-for-fintech-startups.html
(Author can be reached at email@example.com)