27 May

In the wake of COVID-19, India's FinTech investments increased by 60% to $1467 million in H12020, compared to $919 million the previous year. India has surpassed China as the most popular destination for FinTech deals in Asia. According to a research report released by RBSA Advisors, India has the highest investment in the FinTech market. Over the last four and a half years, from CY2016 to H12020, total investments in India's FinTech industry have surpassed $10 billion.

Bengaluru and Mumbai are the top two headquartered cities for FinTech companies due to the availability of a technically trained workforce and the involvement of most sections of the financial services and technology ecosystem. With your enrollment in the fintech certificate program, you can get the basic knowledge and understanding of how this sector works and operates. Some of the best fintech courses options available are Fintech Prodegree, MBA Fintech, Advanced Programme in FinTech and Financial Blockchain (APFFB), Masters in Fintech and so many more. 

The fintech field is maturing as a result of three factors:

  1. Artificial intelligence and cyber defences, for example, are maturing emerging technologies that helped accelerate progress in this field. With PGDM in the financial market, one can get exposure to this area. 

  1. Many funds that invested in the first wave of companies that attempted to capitalise on and expand on the damage caused by the financial crisis in 2008 are nearing the end of their lives, and are therefore selling their homes to repay their investors.

  1. The macroeconomic situation has deteriorated, especially in the United Kingdom (one of the most advanced fintech markets) and Europe, slowing funding to younger and newer companies.

What Are the Different Types of Fintech?Fintech technology is described as any technology that assists financial services companies in operating or delivering their products and services, or that assists businesses or individuals in managing their financial affairs. Regulatory technology is included in this definition, but not purely cryptocurrency in the sector (the latter is to avoid excessive volatility).

After pursuing fintech courses, following are the major players in the financial services arena (in order of magnitude and importance):

  1. Regulators, central banks, sovereign wealth funds, and all other government institutions that issue licences and have active control over the financial sector are examples of government entities.

  1. Traditional financial services companies are becoming more interested as investors, potential strategic acquirers, and innovation promoters. Citibank, for example, is a bulge-bracket bank in the United States that is becoming increasingly active in the business. It offers a variety of programmes, including an accelerator, outside acquisitions, and a venture capital investment team that invests the bank's funds.

  1. Tech Firm offers Financial services in addition to their main products. Both Uber and Amazon, for example, have dedicated internal teams of engineers and specialists working to expand their presence in the field. With the basic fintech training courses, they are well equipped with the knowledge and possess a great deal of skills required to perform the task to excel. 

  1. Companies that include financial transaction technology, such as Bloomberg, Thomson Reuters, American Express, Visa, and others, are all part of the fintech ecosystem and must keep up with all developments in the space as well as new entrants that could pose a threat.

  1. Professional investors may be classified by fund size (small or large), stage (seed, late-stage, private equity, etc.), and source of funds (pension funds, strategic investors, family offices, and so on).

  1. New, innovative businesses are emerging in a variety of industries, which we will discuss in one of the parts below. Most of these businesses began by “unbundling” one of the services offered by an established player.

While a few companies have grown in their primary Fintech segments, their desire to expand into other areas is equally admirable. We've seen success stories and incredible valuations of markets that aren't just for unicorns, but also mid-sized companies. There have been success stories and incredible valuations of markets that aren't just for unicorns, but also mid-sized companies. However, the sector's penetration and play is only the tip of the iceberg in terms of a deep systemic shift that India and the sector will experience in the coming decade. 

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