Fintechs Strike Gold As Digital Life Grows

Outlook Money|July 2020

Fintechs Strike Gold As Digital Life Grows
There is a sudden surge of demand for using these app-based financial platforms post pandemic
Aparajita Gupta

With the coronavirus-induced lockdown getting prolonged, the fintech platforms are reaping a harvest with netizens thronging various sites for financial solutions. Many fintech platforms have even seen its traffic getting doubled during the lockdown period without any marketing spent.

Apart from digital payments companies who witnessed a boom during the demonetisation and are now seeing good traction on their platforms, other fintech platforms are also witnessing sharp surge in their businesses. “We have seen no fall in our user base during the lockdown. In fact, the transactions on our platforms have grown by 2X. Before the lockdown we were growing 20 per cent month-on-month. Since the last three months we have been growing by 30 per cent month-on-month. We crossed 6 million users in April,” says Harsh Jain, Co-founder and Chief Operating Officer, Groww.

As an investment platform, Groww currently offers direct mutual funds and recently launched stock investing. The average age of investors on Groww is 28 years.

Evidently, the online traction for these platforms have gone up thanks to the young population.

Bala Parthasarathy, CEO & Co-founder, MoneyTap says, “We are witnessing an impressive surge in our organic lending activity and the number of daily enquiries. Just like demonetisation provided a massive impetus to digital payments, as we navigate through the post-COVID world of lockdowns, digital lending has come to the centerstage.”

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July 2020