Demographic dividends and increase in fintech

Whether it is digital banking, digital payments, digital borrowing or lending, crowdfunding or cryptocurrency, every sector has grown significantly.

With over 65 per cent of the population under the age of 35, India is the youngest country in the world. The country’s young population provides a huge human resource with energy and efficiency. This population has access to education, training and technology. These people are full of new ideas and aspirations. This population is the main reason behind the rapid growth of the Indian economy in the last few years. In the last few decades, almost every sector of the economy has benefited from population changes in the country; However, one sector that stands out from the crowd is the fintech sector.

The fintech sector in the country has grown significantly in the last 5 to 7 years. Whether it is digital banking, digital payments, digital borrowing or lending, crowdfunding or cryptocurrency, every sector has grown significantly. There are several reasons behind the growth of the sector. A strong economic environment, availability of funds, rise of technology, favorable population, government support, etc. are some of the important factors behind this growth. Although each factor is very important in itself, the role of optimal population is fundamental.


The per capita income of Indians has increased significantly in the last few decades. Many people today are earning more than their parents earn in a month. High income has not only improved living conditions but also increased ambition. Decades ago, it was considered taboo to take financial services like buying goods on credit or EMI, however, today’s generation sees these services as a way to meet their needs and aspirations. Due to this, the digital credit sector has gained significant momentum. A few years ago cryptocurrency was an unimaginable concept. Today, millions of Indians have invested billions of rupees in cryptocurrencies.

Another important change in the attitude of Indians is about entrepreneurship and investment. In the past, Indians were risk averse and more inclined towards secure jobs. However, millennia are now open to taking risks and becoming entrepreneurs. This shift in attitudes towards higher disposable incomes has greatly contributed to the growth of the country’s fintech industry. There are hundreds of fintech start-ups in the country that have been started by the younger generation.

Ability to learn and adapt

Everyone knows the role of digital technology in the growth of fintech sector. However, in addition to technological advances, the younger generation has the ability to learn new technologies and adapt to changing circumstances. This has led to the creation of a new market for financial services with the help of digital technology. The younger generation buys, pays, borrows, invests and other financial services online. This is possible only because of their association with digital technology and their ability to adapt to the rapid changes taking place in the fintech landscape.

Millennials are always connected to the Internet today They leave digital footprints on social media and elsewhere on the web. These digital footprints play an important role in determining the indebtedness of individuals for fintech companies. Fintech’s AI and ML technology analyzes digital footprints, such as shopping behavior, type of travel, etc., to determine the creditworthiness of potential customers. Since millennials have left the most digital footprint, in a sense, they are contributing to the rise of fintech.

The combination of technology with financial services is a match made in heaven. When the power and efficiency of the millennial generation goes hand in hand with this, the result is the rapid growth that the Fintech sector has witnessed. India’s favorable population is contributing not only as a customer of the fintech sector, but also as an investor, innovator and entrepreneur.

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