Yojana And Kurukshetra April 2022 Combo English Monthly Magazine
Yojana’s April 2022 topic is Fintech as an Enabler There was a time when going to the market without carrying a wallet loaded with cash was unfathomable. Eventually, the ATM cards reduced the amount of cash we needed to carry in our wallets to some extent. In today’s time and era, be it the roadside vegetable vendor or big stores in malls, all are accepting digital payments. These are interesting times when mobile payments are surpassing ATM cash withdrawals.
This has brought ease to the consumers and has immensely expanded the scope of the digital ecosystem in the financial sphere. The long queues at the highway tolls and the subsequent delays have been reduced to
FINTECH a great extent with the automated FASTag system. The pandemic was, in a way, boon for the sector when ‘touchless’ transactions didn’t remain a luxury but a necessity to combat the spread of infection. Most of the activities saw a shift from a brick-and-mortar model to personal screens for a long duration. This made a good use-case for fintech. Despite the economic downturn, fintech payments saw investments double in the first half of 2020. Digital India opened new avenues of innovation and brought ease through financial technology. Today, it is paving the way to financial inclusion and taking innovations to the last mile, thus empowering local communities.
Fintech is an integration of technology in financial services to provide better delivery to consumers. It is broadly based on the four pillars of income, investments, insurance, and institutional credit. For the citizens, the government making use of technology to link them to the financial benefits and initiatives is another aspect of fintech. With its array of applications, the scope and opportunities are immense.
The Jan Dhan-Aadhaar-Mobile, or JAM Trinity has been a gamechanger in financial inclusion in India. This year, the Union Budget has laid a sound roadmap for fintech and its scope in augmenting services to the people. The introduction of Digital Currency and core banking in post offices are considered the next leap in this direction. Direct Benefits Transfers and e-RUPI have enabled targeted delivery and have reduced leakages in the system while initiatives like PM SVANidhi have enabled access to credit for small vendors across the country.
Though the urban market is embracing fintech, rural India is still a lesser-tapped market for the industry. The infrastructure and manpower required for the fintech solutions to be a nart of rural livelihoods need to be further strengthened to reap its benefits. Also, there is a need to ensure trust in the use of these technologies by the people and a system wherein their money and investments are safe and secure.
Policy support in the area of data security and froud management is essential. The use of new technologies like Blockchain, geo-fencing. geo-tagging, or a framework to prevent phishing attacks can be a step forward in ensuring a secure and stable digital financial ecosystem. With the plethora of opportunities, fintech and its ecosystem have a long way to go as an enabler technology, that is accessible and affordable for economic and social well-being.
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