Challenges met by a Fin-tech company to touch out to their rural audience: India’s financial sector has undergone a pattern shift from provided that old-style services to services based on convenience during the last decade. The financial industry is well-positioned to hold digitization and spread its services to urban and rural customers(Challenges met by a Fin-tech company).
The financial zone has expanded its physical presence throughout India because of the explosion of essential financial services primarily targeted at the rural people, such as the speedy acceptance of mobile and Internet banking and other imaginable strategies.
The financial inclusion and mobile penetration accomplishments in India have hurled the country into the age of fintech.
The Indian financial sector made an important impact by focussing on the
accessibility of equal chances to access financial services over its policies and initiatives such as Pradhan Mantri Jan DhanYojana (PMJDY), Direct Benefit Transfer (DBT), among others.
In spite of the policies, a large section of the adult people still lacks access to
proper financial services due to the crushing size of its people and the apparent difference between the rural and the cities. Moreover, the accessibility of cost-effective and bearable delivery mechanisms to rural areas further confuses the situation.
The challenges that the Indian fin-tech segment is facing are Lack of Trust
Indian clients tend to have a traditional outlook and traditionally prefer to conduct business over cash transactions. Despite an increasing number of the public who have the right of entry to banking, those who remain unbanked or underbanked still lack knowledge of banking services. Thus, for Fin-Tech firms, it’s a challenge to build trust among people.
Geographical isolation About two-thirds of India’s population lives in rural zones, along with 68 % of the labor force. Despite the growing rural economy and the increased use of financial services amongst rural persons, fin-tech firms struggle to meet rural demand.
Decreasing limits on financial transactions, excessive working capital, high operating expenses, and lack of financial literacy are critical preventions in approving many financial products and services. Absence of proper regulation in the fintech sector The rise in regulation may threaten Indian fin-tech companies by muggy innovation and raising operating costs.
However, controlling transparency will boost the sector in the future by allowing it to earn customer self-confidence and bring more capital.
Regulators will likely pay greater attention to fin-tech firms as they grow
exponentially, and as regulatory measures, a few states have already been
introduced, such as the Bharat Bill Payment System (BBPS), Payments Bank
Licenses, Unified Payment Interface (UPI).
The central controlling body has also introduced regulations for new sectors, like P2P and aggregators, based on a consensus-driven strategy.
Age factor. There has been extensive growth of digitization across all sectors encouraged by the Indian government. The surge in digitization was mostly seen among Indian millennials since they formed a substantial portion of its consumer base open to new technologies and digital solutions. However, financial and internet learning challenged older audiences when adopting fin-tech products and services.
The gap in fin-tech usage is based on people’s current skills, desires, and needs. Fin-tech firms need an Omnichannel robust and effective strategy to engage rurally entrepreneurs and provide them with the right technology platform and support to offer many services capably and effectively to succeed in the rural financial sector.
To address the rural challenges, the fin-tech enterprises have to rise outreach, improve the customer experience of the rural audience by building relationships, decrease interference to the execution of the plan, and encourage acceptance and usage of the digital channel.