Role of Technology in Development of Alternative Finance in India: A Discussion

Abstract

A candid reflection into the current financial system will make a realization that Traditional corporate finance just isnt equipped to handle a fast-paced, interconnected world. Not being negative about the Indian financial services but technology has to be incremental in standing at par with the young companies requirements. Development of entrepreneurial culture and ecosystem must not negate the tech supported alternative sources of finance. Banks are becoming tech savvy however at the time due to the increased amount of risk which these young companies carry they are reluctant to back the finance requirement. Focusing on the basket of alternative finance sources like crowdfunding peer to peer lending angel investment, policy makers can provide the levee to the tech hungry startups and thus take the startup ecosystem on a strong footing. Researcher in the paper has reviewed and revisited the alternative sources of funds growing in India along with some already established sources in developed financial economies and its feasibility in India. India is the emerging as entrepreneurship and financial markets are developing and changing in evolutionary if not revolutionary manner. Keeping technology as the focus, researcher revolves around the options and sources of alternative finance, its pros cons and feasibility in India. The paper has been divided into two part first is capital availing and other is payment. Capital availing includes crowd funding and P2P lending and payment includes the Mobile wallet.

Keywords: Fintech, Crowdfunding, P2P, Mobile Wallet

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