Economy

Fintech adds 8% to the welfare of Indians, says study

Updated : September 19, 2019 05:27 PM IST

The analysts found out that the multiplicative effects of fintech have contributed significant 8 percent to an increase in the wealth of Indians.

Fintech adds 8% to the welfare of Indians, says study

Over the six years from 2013 to 2018, the average multiplicative contribution of fintech to the growth of per capita income in India amounted to 40 international dollars per year (PPP), the analysts of Robocash Group measured.

The analysts found out that the multiplicative effects of fintech have contributed significant 8 percent to an increase in the wealth of Indians.

Taking the size of the gross national income per capita for the same period estimated by the World Bank at 500 international dollars (PPP), financial technologies had a significant share of 8 percent.

"In the first turn, a significant part of that input belongs to demonetization. It caused a sharp increase in cashless payments and led to a decline in the shadow economy. As a result, a large volume of informal cash flows, which were not accounted in GDP before, became officially recorded," the analysts said.

With the use of economic modelling, the analysts of Robocash Group measured the average multiplicative contribution of fintech to the growth of per capita income in India.

Commenting on the findings, the analysts added the annual contribution of financial technologies to the national income would only grow. An increase in the use of digital services by the population and further penetration of the internet in rural areas will play their part in this process.

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