India’s FinTech To Be Hindered Due To Lack of Trust in Digital Systems

India’s FinTech To Be Hindered Due To Lack of Trust in Digital Systems

FinTech ecosystem faces challenges due to the diminished trust in the digital systems.

UK Insurer Aviva Makes An Investment In Wealthify
Technology companies are making their space in financial services
FinTech Deal: Alibaba Unit Will Invest $200 Million In Korean Kakao

Plans to embrace digital systems in India can be delayed due to lack of trust. FinTech ecosystem faces challenges due to the diminished trust in the digital systems. The national creative director at Ogilvy & Mather Raj Kumar Jha who is the head of the advertising agency claims the backend was not ready for India to completely go digital when it comes to money control systems.

When addressing the public at Confederation of Indian Industry (CII) FinTech 2017 conference, Jha told the public that stakeholders still have to carry papers for verification purposes even if different sectors embrace digital systems.

Adhil Shetty, CEO of BankBazaar.com, which is an online platform where people can compare different financial services, claimed that many clients are willing to adopt the digital systems if the systems prove to be trustworthy. They should be as well proving to be dependable and secure. Putting the systems into operation is also another issue which the industries have to deal with.

The CEO said he believes if the trustworthy ecosystem exists, customers will demand it. He was eager of the time the mass will adopt the digital solutions fully.

In the FinTech space, it is very essential to develop trust in customers so that they can embrace the digital solutions. Many organizations prefer a system with the highest level of security great user experience.

Before the market can make a significant step towards embracing the digital era, there has to be a significant behavioral change. People should be comfortable before they adopt digital systems in India.

Pushing the Digital Agenda

Arun Jaitley has been advocating of India to embrace digital solutions by asking banks to promote the digital systems.

According to the minister, the cash curb which occurred in India shows that digital currencies like Bitcoin are being considered the new normal. He was cited saying last November that there was an increase in cash than cheque, but the new normal for India will dictate an increase in digital currency.

There are several campaigns in India aimed at increasing the public awareness on digital banking solutions. Both the reserve bank of India and the central bank are aiming to go digital in the FinTech age. Currently, the Bitcoins technology is used in India and there are efforts to increase the awareness of digital currency. The acceptance of Bitcoins in the finance institutions in India is a good show of India being ready to embrace the digital age.

COMMENTS