«India at No.2 for fintech innovation: CapGemini report»

Times of India @timesofindia, Rachel Chitra

«India has been ranked at number two spot, when it comes to the strength of fintech movement, according to a World Retail Banking Report 2017 by French software giant CapGemini SE.

»The report placed the US at the No.1 spot, followed by UAE, China, and Netherlands, after India.

»When it comes to payments, Indians and Chinese are more trusting of new companies by using e-wallets, mobile apps, etc; when compared to their peers across the globe. The two nations have the highest percentage with 55-60% of users taking to financial services from non-traditional firms (non-banks).

»Indians also reported a 53% positive customer experience with fintech, this is only higher than the US (where customers report 53.3% satisfaction).

»Other countries like the UAE have 48.2%, China 47.2% and Netherlands 41.9%.

»The report said, non-traditional firms had less impact in Europe, Middle East and Africa. Only 33.2% customers used the services of new-age firms, compared to 35.7% who transacted at the banks in these regions.

»However, non-banks in Turkey and the UK bucked the trend by margins of 11.6% and 8.8%, respectively. This could be due to the growing presence of digital banks and fintech companies in those countries.

»Anirban Bose, head, global banking and financial services, Capgemini, says the high levels of positive customer experience in India has more to do with the government push for fintech innovation.

»“The government is pushing financial innovation through its recent launch of a smartphone based money transfer system and several prominent banks are heavily involved in teaming up with fintechs. For example, Yes bank has partnered with dozens of startups through its accelerator program and is pioneering a chat-based payments service. Axis bank has an inhouse incubator, an accelerator and a social networking space for startups. DBS Bank has launched the mobile-only Digibank that leverages biometrics and artificial intelligence,” said Bose.

»Even PSUs in India are on board with this spurt of fintech activity. “SBI was among the first banks to adopt Aadhar Enabled Payment System, which enabled customers to make transactions using just their finger print and Aadhar number,” he said.

»The report also said in emerging economies like India and China, more than half of gen-Y and tech-savvy individuals are customers with non-banks; this being the highest percentage globally.

»Another positive was that India, Australia and Singapore are emerging as centers of innovation for tech-driven financial services. “A regional trend that we expect to continue,” said Bose.»

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