In India, many people in rural and semi-urban areas lack access to formal financial services. However, FinTech companies are changing that by providing online banking and financial services, such as investments, digital payments, digital ledger apps and Aadhaar Enabled Payment System (Aeps), to underserved areas. They are also educating individuals through investment and financial planning articles and videos, bridging the gap between underserved areas and established banking infrastructure.
Here are five distinct FinTech startups that are solving the financial gaps in India’s rural areas.
Aye Finance is a non-banking financial company that aims to solve funding challenges faced by MSMEs and enable their inclusion into the mainstream of the economy. Aye Finance uses a technically enabled process that creates credit insights through a variety of available business and behavioural data. The company funds its non-profit initiative to coach MSMEs on market knowledge, business book-keeping and advising on operations techniques.
BankSathi has a network of 1.5 million financial advisors and provides suitable financial products to clients in Tier 2, Tier 3, and remote locations throughout India’s 18,000 PIN codes. It recommends products in various financial categories, such as bank accounts, credit cards, loans, demat accounts, and insurance policies, and enables rural customers with previously unavailable financial services.
Bharatpe provides small companies and merchants with digital payment solutions in more than 100 Indian cities, including UPI payments, credit and debit card payments, and payments via QR codes. BharatPe provides loans to merchants and small enterprises to aid in business expansion, disbursing them quickly, often in less than 24 hours, and requiring little documentation.
KhataBook is a digital ledger app that is made to assist small business owners in keeping track of their transactions and outlays. With a presence in more than 700 Indian locations, the app enables small businesses to keep a digital ledger, create invoices, and remind clients to make payments.
Propelld is a FinTech startup specialising in education lending and aims to democratize access to education and drive-up India’s gross enrolment ratio (GER) by removing financial barriers to the right education with customized financial products. The company provides personalized loan products based on the course’s end-use and borrower’s profile, aimed toward realizing the educational dreams of tier 2 and tier 3 students and their families.
FinTech startups like these are promoting financial inclusion and empowering individuals to build a brighter future in underserved areas. By using technology and creativity to bridge the gap, FinTech businesses are making it easier for small enterprises and merchants to operate, grow, and succeed while educating individuals about finances through investment and financial planning articles and videos.
