Fintech banking in India has seen more demand for banking facilities. This is due to the rise of digitalization and a cashless economy. Here is where the role of Fintech companies has started to emerge.
India is rural and scattered. It has many markets that lack proper banking infrastructures like ATMs and bank outlets. This is due to the high setup cost and low expected returns because of the low population.
To fix this problem, many Fintech companies have introduced Micro ATMs and AEPS portals. They also offer doorstep banking and money transfer systems. These tools can meet the basic banking needs of underbanked sectors. And they do so at low set-up costs.
Here, Fintech companies partner with retailers. They offer banking services to the retailers’ customers. In return, retailers can earn a good profit.
Fintech Banking in India’s Trends That Are Transforming the Industry
Micro ATM Machine
Agents can use the Micro ATM Machine, a small device, to provide the service of cash withdrawal.
This device functions like an ATM only. Here, customers have to swipe their debit cards to withdraw money. Retailers can use the micro ATM as a POS device to accept payments from customers.
AEPS Portal
AEPS (Aadhar-enabled payment system) lets users withdraw cash. They use their unique Aadhar number and biometric punch.
The government also uses the AEPS Service to disperse government pensions. These include NREGA, Social Security, Handicapped, and old age pensions. It is also used for various other government funds for many causes.
Doorstep Banking
FinTech companies have hand-held devices. They have made door-step banking real. Agents carry portable devices. These include biometric scanners and Micro ATMs. They take them to any person’s house. They offer cash withdrawals, balance inquiries, money transfers, and more. This service is very useful in remote areas. In these areas, the entire village meets at an open space once a week to use these facilities. This is only possible due to Aadhaar banking and devices like Micro ATMs.
How Fintech Trends are Transforming the Banking Industry
Fintech trends have been revolutionizing banking. They bring new convenience and accessibility. One remarkable innovation is the Aadhaar Enabled Payment System (AEPS). It uses biometric authentication linked to Aadhaar cards. This system allows individuals to make transactions. AEPS has helped millions in rural and urban areas. It has helped them access banking services. They can do so even without traditional bank accounts. This inclusivity has bridged the gap between the banked and unbanked. It has fostered large-scale financial inclusion.
Micro ATMs are another game-changer in banking. They are important in remote areas with limited banking infrastructure. These devices enable basic banking services, like cash withdrawals, deposits, and fund transfers. They bring banking to the doorsteps of people who before had limited access. Micro ATMs use technologies like GPRS and biometric authentication. They ensure secure transactions. They let people manage their finances without having to visit a bank branch.
Moreover, the Bharat Bill Payment System (BBPS) has made bill payment easier. It offers a one-stop solution for many utility bill payments. BBPS lets consumers pay their electricity, water, and gas bills online. They can also pay through agents. This eliminates the hassle of queuing at many payment counters. This central system boosts efficiency, transparency, and convenience for both consumers and billers. worldwide bill payments are undergoing a significant change. These fintech innovations are changing banking. They are also reshaping finance. They make services more inclusive, efficient, and accessible to all.
How to Start Your Own Fintech Franchise and Offer Banking Services?
Any person can start their Money Transfer business franchise, or in fact, provide all FinTech services at the click of a button. All one needs to do, is to download the Biznext Mobile Application from their Play Store or sign up with Biznext through the website and log in using your phone number and OTP.
After logging in, complete the process of E-KYC.
Once you complete the signup process, you can activate the services you want to avail from the service panel on the left-hand side.
On successful activation of the service, you can offer 27+ services like AEPS, Micro atm, Money Transfer, etc, to your customers and earn a lucrative commission on every transaction.
To know more, contact Biznext at 022 42123123.
Conclusion
In conclusion, the intersection of financial technology and banking services is reshaping the landscape of financial inclusion in India. Fintech innovations are not only addressing the challenges of traditional banking infrastructure but also fostering economic empowerment, particularly in underserved communities.
The proliferation of Micro ATM Machines, AEPS Portals, and doorstep banking exemplifies the adaptability and efficacy of Fintech solutions in catering to diverse needs. Moreover, the symbiotic relationship between Fintech companies and retailers underscores the collaborative efforts driving financial accessibility across the nation.
As individuals are empowered to establish their own Fintech franchises, the democratization of financial services becomes apparent. This democratization, coupled with technological advancements, has the potential to revolutionize banking and financial systems, fostering greater financial inclusion and economic growth.
However, challenges such as regulatory frameworks, cybersecurity concerns, and digital literacy gaps must be addressed to realize the full potential of Fintech in banking. Collaborative efforts from policymakers, industry stakeholders, and technology innovators are essential in navigating these challenges and ensuring the equitable distribution of financial services.
In essence, the rise of Fintech in banking represents a transformative journey towards a more inclusive and accessible financial ecosystem. By harnessing the power of technology and fostering collaboration, we can unlock new opportunities, empower individuals, and drive sustainable development for the nation as a whole.
Also read – The Future of AePS in India’s Digital Economy
