There are more than 1200 Fin Tech companies operating in India, tweeted NITI Aayog CEO Amitabh Kant. (Image: PTI)

The number of deals happening in the financial technology space of the country has witnessed a sharp increase from 2014 onwards. In 2017 itself, the sector saw an investment of $3 billion coming in, tweeted NITI Aayog CEO. “Driving financial inclusion! India has pole vaulted in the top 5 Fin Tech countries globally. There are more than 1200 Fin Tech companies operating in India. The sector saw US $ 3 billion investment in 2017 with number of deals jumping from 26 in 2014 to more than 200 in 2017,” NITI Aayog CEO Amitabh Kant said.

A few days back, Amitabh Kant had said that low cost Internet based transactions and business efficiency due to technology advancements are expected to kill physical banks in next 5-6 years. “My view is in next 5-6 years you will see death of physical banks. It will be very difficult for physical banks to survive because the cost of physical banks will be so enormous. It will be so enormous compared to an online instrument, many of the fintech start-up and their ability to do data analysis (and) providing lending,” Amitabh Kant had said at an IAMAI event.

He also said that with proliferation of mobile phones and Internet based transaction, it will be easy for financial technology firm to do analysis and provide loans to person who requires it and has good credit history. “Amazing thing is that a lot of this going to happen because India will become data rich before it becomes rich. Our ability to use technology, analyse data and able to reach and provide financial inclusion to people in rural area will be key drivers of growth,” Kant said. He said that India is now home to about 900 financial technology players and received funding of $3 billion.

This is forcing Indian banks to transform themselves riding on wave of Fintech. “There is lot happening in India because of Internet. We have leap frogged US technology industry with very simple and practical innovation. Cost of customer acquisition in India fell down to USD 1 where across America and Europe the cost of acquiring is between USD 28-30,” Amitabh Kant had said.