Indian BFSI Gaining Momentum on Electronic Payments

• Email
• Print
• ( 0 )
• 

Taking a cue from the technological adoption within the middle class segment of the country, India is poised for a transition from paper to electronic payment methods as far as the banking sector is concerned.

Within the banking segment, in India the tide is fast turning in favor of the technology as the end consumers are increasingly becoming tech-savvy and operating electronic payment transactions with either plastic cards or, to a lesser degree, mobile phone-based applications. All this is prompting the BFSI segment to continuously look out for better and cost effective technology that can facilitate as well as enhance their payment gateways and related mechanism.  

Today there is a huge demand generation happening at the end customer level that calls for 350-400 million out of the country’s 1.2 billion people as middle class, to look out for better technologically oriented banking options. This is what is driving the banking segment’s race towards embracing technologies like cloud computing, SaaS or PaaS today.

On the other hand, challenges to further growth in this industry include a lack of legal protection and country-wide infrastructure capable of handling electronic payments for major private and public banks in India. Moving forward, this is likely to change as more and banks go for electronic payment methodologies.

The government of India is also making effort to further enhance the banking network within India and encourage investments in modern infrastructure like ATMs and connectivity.

Despite drawbacks of this region, experts close to the industry emphasize that there is a huge opportunity for domestic and foreign financial institutions to take the lead in an expanding economy like India.