Today, Fintech is so ubiquitous and that many solutions are an intrinsic part of our life. Even traditional laggards like the functioning of lending and borrowing have been swept by technology innovation. On the other hand, 2021 has witnessed a transformational change in the payment ecosystem. With this unrestricted flow of customer demands, there is an increase in the widespread innovation in payments that, in turn, squeezes the traditional payment market.
The payment system has changed the way we all conduct business. Here are some of the FinTech firms that are making headlines in the Fintech industry and reaching out to various markets with their unique financial solutions.
ToneTag
Backed by Amazon, Mastercard, 3one4 capital and Amensa, ToneTag is the largest sound-wave communication technology platform in the world. This technology uses sound waves to enable contactless, offline, and proximity data communication on any device. With 15 globally filed patents and multiple grants, this Bengaluru-based company is changing the payment and transaction landscape in India. Leading this initiative is ToneTag’s ‘Retail Pod’, a sophisticated payment accepting device, which is capable of accepting payments from any phone, basic or smart, working with or without the internet. One of the key features which makes the Retail Pod a promising prospect is its Sound-based authentication of the OTP, wherein the Retail Pod itself authenticates the incoming OTP from the bank and completes the transaction through its highly secure 3-layered encrypted sound technology. The simplicity, security and sophistication of ToneTag’s Retail Pod have captured the interest of both merchants and consumers alike; this fact is proven by the 3,10,000 merchants who use it for their daily Peer-to-Peer transactions and the 100 million customers who use ToneTag’s proprietary technology for their day-to-day payments.
Technological advancement made by the firm in 2021 in the Fintech space:
- ToneTag has successfully executed offline voice-based payments via feature phones and smartphones in areas with inconsistent internet connectivity, with people who are digitally not savvy or find it difficult to use apps for banking or payments, thereby making digital payments a reality for all
- With this recognition, ToneTag is now poised to provide voice-based digital payment options to more than 600 million feature phone users for the first time to improve their lives, start businesses and gain control of their finances, leading them to digital empowerment
Eko
Eko, one of the fastest-growing fintech platforms in India, empowers a generation of ambitious entrepreneurs to improve their financial health and access to the global economy. Eko helps small entrepreneurs discover earning opportunities, tools for digitization, and first-time access to credit – each tailored to meet their needs. Since 2007, Eko has built a tech platform that at its peak processed Rs 2500 Crore across 70 million transactions in a month. Eko has serviced over 35 million customers through a network of over 2.5 Lakh sellers, growing 20% month-on-month. These sellers help the brands sell their digital products and services and assist their customers in fulfilling their transactions.
Please find enclosed the technological advancement made by the firm in 2021 in the Fintech space:
- Eko has forayed into the lending ecosystem by creating the ‘first time credit’ module for ambitious sellers.
- Eko strives to help them overcome such challenges by collaborating with NBFCs and P2P lending organizations. By dispensing $1bn of loans with flexible repayments infrastructure the company wants to provide affordable capital and AI-backed services to MSMEs, allowing them to instil digital transformation within their operations.
- Eko has started using the ‘micro-credit approach’ in its services and designs them to fulfil the same. Its daily repayment infrastructure capability allows sellers to repay loans daily in part or full.
- Eko’s model also uses demographic, and engagement data of the sellers to drive efficient results.
Nivesh
Nivesh is a mobile-first digital platform helping distributors of mutual funds and other financial products to deepen their penetration in the country with state-of-the-art technology. The platform enables distributors to expand their businesses and bring in new clients, who can now be serviced for different AMCs and hence experience improved portfolio performance. This year, the platform had recently raised $1.6 Million led by IAN Fund. In 2020, Nivesh was listed in WealthTech100, which is an annual list of top 100 of the world’s most innovative Wealth Tech companies selected by a panel of industry experts and analysts. The selected companies were recognized for their innovative use of technology to solve a significant industry problem, generate cost savings or improve efficiency across the investment value chain.
Technological advancement made by the firm in 2021 in the Fintech space:
- IAN fund backed Nivesh forays into insurance space with the launch of an insurance platform called Samavesh
- Through Samavesh, Nivesh will reach more than 3000 pin codes and partners in about 200 pin codes
- The platform will enable the customers to select the right insurance plan after comparing the quotes from multiple insurance companies
Capital Float
Capital Float is India’s leading Buy Now Pay Later and credit platform serving a mix of salaried & self-employed individuals. From offering innovative checkout credit solutions for consumers to financing the business and personal needs of individuals, we are leading the charge in addressing the country’s enormous credit problem. Powered by rigorous innovation and technological advancements, and with the acquisition of India’s leading Personal Finance Management App – Walnut in 2018, we’re proud to be recognized as a trailblazer in India’s Fintech revolution. We passionately serve our customers with cutting-edge financial products and strive to help them #BreakLimits. Due to decades of informal lending, a large majority of customers don’t have the necessary formal documentation to be eligible for credit. If they do have the prerequisite documentation, they are often battling the challenges posed by the structural bureaucracy of lending in India. – Meanwhile, owing to the gargantuan geographic landscape of the country, several formal lenders are unable to cater to the financial needs of customers in tier 2 and tier 3 towns.
