The use of technology is essential for access: Policymakers and regulators have consistently lobbied for increased access for customers outside of the top tier – those outside major economic centers as well as those with small ticket sizes – through a mix of incentives and obligations imposed on service providers, but these have not been sufficient to lead to mass adoption. As the original architects of the India Stack pointed out, technology-driven access would be essential to acquire and provide these customers with appropriately designed products and services at a sustainable cost. The positive customer response is best seen in the vast customer footprint on payment apps in just a few short years, but the growth rates of fintech offerings on mutual funds, late payment loans, and insurance are everything. also impressive. The challenges posed by the Covid-19 pandemic have underscored the role of digital in customer access, understanding and engagement and in helping financial institutions protect their balance sheets.
We have critical mass for partnership-driven growth: With the strong growth of recent years, the incumbent operators of the ecosystem now see the appeal of fintech. Many banks and financial product companies have entered into partnerships to enable new customer acquisition, better customer engagement, and to add layers of monetization. A recent report from Credit Suisse points out that such partnerships, along with proprietary digital banking platforms, help find 60-70% new retail customers, 60-80% retail fixed deposits, around 75% new credit cards. credit and 50-60% of new home loans / MSMEs for large banks.
