The rapid growth of digitisation has led to significant technological refinements in various spheres of our lives. Today, the digital world has taken over massive industries like fashion, entertainment, agriculture, and finance. Instead of visiting the nearest bank branch, you can conveniently download their official app. Conducting your financial affairs has never been easier!
India has come along by leaps and bounds during digitisation’s global explosion. In 2021, India led the charge for the most financial app installs globally. The digital India movement has significantly contributed to this progress. However, many factors played a crucial part in this achievement.
Financial Banking: The Period Between 2020 to 2021
Despite suffering a brief fall during the pandemic, India emerged victorious with over 149 crore installs for finance apps. These numbers were estimated based on their running from January 2019 to March 2021. Between January to March 2020, the shock of the global pandemic staggered the growth of digital finance with a decline of 51%. The following year, the industry recuperated with an astonishing comeback of 3.3x!
Here are the highlights of India’s digital boom during this period.
● Recognising the needs of the contactless world, financial companies began aggressively promoting their apps
● Stock market investment apps and loan apps rose to popularity
● Wallet apps, among other payment services and gateways, captured 80% of finance app installs in India
● India controlled a budget of over USD 146 million of the USD 3 billion invested by marketers for the demands of global users
● From January to March 2021, app fraud rates on loan apps fluctuated between 40 to over 60%
In the fiscal realm, the industry witnessed finance app installs across various categories: Financial Services Apps (81%), Investment Apps (12%), Digital Banking Apps (4%) and Traditional Banking (3%).
The Way Forward From 2022
Experts foresee a promising age of digitisation with India at the helm of technological-based advancements in the banking and financial services industry. With a keen interest, the government has proposed several initiatives to reach futuristic development in these sectors. In the Union Budget 2022, Finance Minister Nirmala Sitharaman announced the government’s plans for digitisation.
Here are some of the highlights from the Union Budget 2022 regarding digitisation in the financial sphere.
● Sitharaman stated that the government predicts an exponential growth of USD 800 billion by 2030 in India’s digital economy
● Within the next three years, India’s combined valuation of the fintech industry is expected to reach USD 150 billion
● Due to the availability of funds, most emerging startup unicorns are from the fintech sector
● The government plans to set up 75 Digital Banking Units in 75 districts through scheduled commercial banks by July 2022
With the rising hopes of Indian citizens across the nation, the Union Budget 2022 has promised to usher in the bright age of digitisation.
5 Benefits of Digitisation in Finance
Regardless of whether you use UPI and digital wallets daily, digitisation in the financial industry is collectively beneficial to us all. Here are some of the benefits you can enjoy through digital banking and financial services.
- Contact-less and Convenient: You can comfortably deposit cheques, check your balance, transfer funds, and set up notifications for transaction alerts through financial apps
- Security Measures: In case of security threats, some financial apps request additional verification, or you could set up multi-factor authentication on your device
- Control Your Accounts: Financial apps enable you to access your bank account in real-time with its simple interface for easy navigation
- Numerous Helpful Features: Financial apps come with various features to improve your user experience like
- Better Access to Financial Literacy: Financial apps help you close the gap between financial literacy and the uninformed by giving them access to the latest trends in the industry
By taking over traditional banking methods, digital banking has seamlessly introduced ease of access to financial institutes without disrupting your daily lifestyle.