What are the Major Challenges Affecting Fintech Adoption in India | Article by Mr. Ankit Agarwal Managing Director, Alankit Ltd. | Alankit.com
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What are the Major Challenges Affecting Fintech Adoption in India

MD Article October 2022 Oct 10, 2022

Fintech companies are on a path of enhancing their growth and building a reputation in the industry. Financial technology is improving and automating the process and services within organizations. However, these challenges push our imagination in new ways and encourage unparalleled growth. Still, there’s room for improvement with a few challenges they come face to face during the course of transformation and adaptation.

Challenges the Indian Fintech Sector Faces

Regulatory and Compliance Laws

Compliance laws act as massive barriers for new Fintech entrants. There is an extensive list of formalities that Fintech start-ups need to fulfil before they even start operations.

Unbanked and Under-banked Population

To begin with, Fintechs had staggered growth because of poor infrastructures like low internet penetration and literacy levels in India, especially in remote and rural areas.

Trust in Cash

Due to financial illiteracy, several Indians fail to see the utility that Fintechs offer through their innovative products and service.


The technology that offers convenience also opens up people’s online accounts to fraudsters looking to steal their assets. As a result, Fintechs need to fortify themselves against any challenge posed by hackers.

Industry-Related Complexities

Fintechs are designed to work with a sophisticated working model. This makes it difficult for them to maintain a smooth relationship with other financial institutions like banks. But on the other hand, banks fear working with Fintechs and risking reputation loss.

Thanks to the robust structure, Fintechs enjoy a unique, seamless loan management system that allows all stakeholders to examine customer data and make more informed decisions during lending. Moreover, with the help of brilliant analytical capabilities, like credit analytics, bank statement analysis, and GST analytics, borrowing has become a high-profiteering business for Fintechs.

About The Author
Ankit Agarwal Managing Director Alankit Limited

Mr. Ankit Agarwal, the Managing Director of Alankit Limited, is a qualified Chartered Accountant and an Associate Member of the Institute of Chartered Accountants of India. Mr. Ankit has an exceptional track record in the field of Finance, Accounting, Process Enhancement, Liaising, and Coordination, as well as Research activities.

Under his leadership, Alankit has become a globally recognised organisation. With more than 13 years of experience as a market analyst and visionary entrepreneur, Mr. Ankit has led business operations across multiple sectors, from high Tech to Government and Fintech sectors.

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