Why India Needs More Fintech Start-ups in the Hardware Space Hardware will come into use for a service like KYC, in putting an end to unnecessary paperwork and innumerable visits to different banks or offices

By Sanchita Dash

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Shutterstock.com

An app that pays your bills or tells you where to invest in the stock market or even lets you buy insurance just with a tap on your mobile screen — most of the fintech developments these days are in the software digital space.

But with the increased usage of the Near Field Communication (NFC) technology or wearables that enable payments or even the government encouraging the usage of Aadhar Pay, are we looking at the next big disruption within fintech? Entrepreneur India finds out.

Hardware Will Take Up Space in the Backend

So far, robots and other hardware developments have been mainly seen in the manufacturing industries. "The ATM is the only hardware we are dealing with today in the fintech space on a day-to-day basis. Even in the lending segment, the credit score is created digitally and there's no work as such with hardware. But, it will see a lot more importance in the backend, where it will work in obscurity, away from consumers' notice. There are already other things like NFC payments and wearables that are slowly cropping up in the country," said Uday Dhoot, Founder, Oyepaisa.com.

Dhoot believes that hardware will do a good job in enhancing security coverage or in blockchain technology. "Even for something like GST, a concern that still remains is whether the server will be able to take the load every fortnight, when people across the country upload their documents. This is where a hardware start-up can make a difference," he said.

Robots As the Face of Banks?

Through their utility in servicing, robots can be seen finding foothold in fintech. "Hardware will come into use for a service like KYC. The reason being, be it banking or mutual fund investments, there's a lot of paperwork that needs a lot of visits to different banks or offices," said Dhoot.

Others, too, believe that branch banking is where robots can thrive. "Kiosk machines and ATMs are getting smarter by the day. You never know, hardware and IoT can come in handy in doing away with a few jobs. When one thinks of robots one thinks of conversational banking, but language can still be a barrier.

"In fact, they will be useful in carrying out all the mechanical activities," said Vijay Khubchandani, a serial entrepreneur in the hardware space. In fact, Khubchandani is currently working on an interesting payment wearable that can be linked to an e-wallet. "Wearables will be able to give consumers a unique user experience," he said.

Right Talent is Missing

The hardware space is still a difficult one to crack and that's not just in the fintech space. "It's not an easy sector to be in. You don't just sit in front of a computer and code here. The talent is missing in the country. It's still one of the least chosen fields by an entrepreneur. However, things are slowly changing, even the government is taking steps. The Department of Science and Technology has declared a grant of INR 10lakh for an engineer, who is building a hardware product in India," said Khubchandani.

Sanchita Dash

Entrepreneur Staff

Former Senior Correspondent, Entrepreneur India

In the business of news for 5 years now. Making my way across India thanks to my career. A media graduate from Symbiosis, Pune, I have earlier worked with Deccan Chronicle (South India's leading English daily), T-Hub (India's largest incubator) and Anthill Ventures (a speed-scaling platform). 

Stories, movies and PJs are my thing. 

If you hear 'The Office' opening score randomly, don't worry it's just my phone ringing. 

 

Thought Leaders

How This Family-Run Company Has Thrived for Five Generations

Marty Ozinga, the CEO of Ozinga, explains the legacy and future of the powerhouse construction materials company.

Business News

Woman Goes Viral After Recording Her Disastrous Call With HR After Being Let Go: 'They Tried to Gaslight You'

Brittany Pietsch posted a nine-minute-long clip of her firing from Cloudflare on TikTok, and it went viral. The company's CEO responded on X — and also went viral.

Marketing

4 Ways AI Is Revolutionizing Targeted Advertising — And How to Balance It's Ethical Implications

AI-powered targeted advertising revolutionizes marketing with hyper-personalized promotions. However, ethical and transparency questions hover over this progress.

Health & Wellness

Stress Buster: Leverage the Benefits of Non-Clinical Art Therapy with This $40 App

Therapeutic, art-based exercises utilize hundreds of original works of art to add a blend of positive benefits to the experience.

Business Solutions

Host Your Website with iBrave — $90 for Life Through March 24

iBrave is an advanced cloud web hosting platform.

Data & Recovery

Through March 24th: 1TB of Premium Cloud Storage Is Just $130 with This Code

Koofr offers advanced file management features, integration with external cloud management accounts, and reliable security.