Demonetisation is the Bitter Pill to Bring up Innovation and Adoption in Fintech Industry
There is lot of whatsapp trolls on impact on Farmers and Tier 2,3 and 4 areas getting badly affected due to Demonetisation. Yes, there were impacts. Not small impacts , it was a livelihood impact. The impact did create a massive opportunity for the rural sector to get onboard with digital bandwagon.
In India, innovation is abundant. The adaptation of innovative product is slow to almost impossible. To make any transformation, it cannot go through a normal “change initiative” process. It has to be drastic and radical.
Aadhaar and Bank account opening has been there for couple of years, but no one bothered to take that seriously. Read More Demonetisation , not only got each member the ID but ensured all got access to accounts.
The innovation in fintech is amazing, it is not only banks who played the role here. It was fuelled by Telcos and Airtel made a leap into payment sector.
After the announcement of cashless economy, Airtel was first to launch the Payment services. Within first two weeks of its launch in rural Rajasthan, it surpassed 1 lakh accounts.
The Rural India
The Indian Demography has over 70% of population in rural area and agriculture / farm based activitivities play major income source. Having tech solution as part of their life is key for success. Govt initiative to ban old notes, helped people to go out of comfort zone and get into technology mainstream.
The UPI based financial transactions have become the largest adopted model in shortest posible of time. The Indian players like Truepay are now going head on with Visa and Mastercard. Thanks to accelerated adoption of digital transaction by rural population.
We have got the initial momentum, we need to go further with more products tailor made for Rural India and sustain this momentum to be successful. The adoption of digital initiative in rural sector has opened large consumer base for innovator to come up with niche product.