Start-ups that are disrupting the fintech space
The financial sector has undergone a complete overhaul as a result of the technological revolution. Coinage was created as a result of metalworking developments. The printing press then made paper money possible. Then ATMs transformed the way we accessed our money, eventually developing into the internet banking options available today.
Fintech, or new digital financial technology, has started to transform and disrupt the financial services industry during the last few years. By developing solutions that increase client value, fintech has revolutionised banking. Peer-to-peer lending, cryptocurrencies, blockchain, digital wealth advising and trading platforms, and mobile payment systems are just a few of the notable advancements they offer to the financial sector. By escalating competition and obfuscating dividing lines across industries, these developments upended the financial services sector. Listed below are five start-ups that are disrupting the fintech space with their innovations.
CLXNS (collections) Technologies Pvt. Ltd is one of India’s leading digital-first debt resolution companies that is committed to streamlining the debt recovery process for various lenders like banks, NBFCs, and fintech firms. With India on the verge of massive credit growth, CLXNs is 100 per cent compliant with RBI’s code of conduct and strictly adheres to the Principles of Fair Debt Collections Practices (FDCP) as suggested by the Reserve Bank of India. The company is focused on building scalable digital first infrastructure to manage debt resolution needs of all lenders, thereby enabling them to focus on their core operations. Headquartered in Mumbai, CLXNS’s foremost priority is compliance and governance.
Rooftop solar adoption was hampered by a lack of low-interest installation financing, access issues, and a lack of a ready market for green energy to monetize excess production. On the other side, widespread adoption would have reduced fuel imports, reduced the nation’s carbon footprint, and generated a sizable number of new jobs. In order to alter the current electricity dynamics, the solar finance platform Aerem was established in 2021. Through its NBFC subsidiary Aerem Finance and its affiliated bank, the Bank of Baroda, loans are made available. For terms of 36–72 months, loan amounts range from Rs 5 Lakh to 1 Cr, and the interest rates (undisclosed) are moderate.
BranchX is a neobank founded in 2020, mainly to help the rural poor who frequently migrate to urban India in search of income. Every family at BranchX receives two linked debit cards: a Raja card for the family’s primary earner and a Rani card for the household. The BranchX Android app serves as the family’s ledger and keeps track of all financial transactions. Additionally, it has an animated AI chatbot named Xenie that instructs consumers in six or more Indian languages about financial products like microinsurance, investments, and small-ticket loans.
Because so few fintech companies offer all-encompassing solutions for a rapidly changing market, digital-first brands continue to suffer with payment issues. In 2020, Nimbbl was founded. Its “payment links” enable companies to accept payments via UPI, cards, net banking, wallets, and other methods through a customised link, while its “payment pages” provide a ready-to-use interface for companies who don’t have websites or apps. Another no-code option offers a variety of payment methods, and companies can pick from a list of suppliers.
Although the pandemic has significantly subsided, revenge travel is still popular in 2023. SanKash, a travel fintech start-up, offers a travel-now, pay-later option that allows users to borrow between INR 10K and INR 10 Lakh in recognition of the significant gap between aspirations and limitations. Easy loan processing, rapid approval, and a personalised payment schedule are some of the conveniences offered by TNPL when booking a package through one of its affiliated tour companies, such as SOTC, Thomas Cook, or Veena World.