The world is growing and the change is absolute, clear and secure. One of the core and crucial reasons is digital transformation. The digital economy emphasises on digital technologies, i.e. it is appertaining to digital and computing technologies. The digital economy is potentially and fundamentally changing the economic and social environment while undergoing huge growth, swift innovation, and extensive application to other economic sectors. With the advent of technology and the process of globalization, digital and traditional economies are merging into one. And this has given rise to many new start-up ideas and trends.
Now it is integrated into every aspect of the user’s life – healthcare, education, banking, entertainment, etc, you name it and there is the existence of digital evolution and innovation. It promotes usage of the internet. The enormous progress of technology and the internet is now a worldwide network and so this economy has ensured that the internet is here to stay and so are web-based businesses. The businesses that adapted and adopted the internet and embraced online business in the last decade have flourished.
Growth Of Financial Based Web Economy
If we look at services like banking, insurance, etc, it is completely digitised. The need to visit the bank has diminished. Most transactions and their payment in the digital economy happen online. Cash transactions are becoming very rare. In fact, during the demonetization, the government made a push for online transactions to promote the web economy. Moreover, the banking sector is fundamentally undergoing a transformation. The switches include changing business models, disruptive technologies, FinTechs, and compliance pressures. With the emergence of non-bank startups, which is also referred to as FinTechs, comes Peer To Peer (P2P) Lending which is currently modifying the competitive landscape in the banking industry. It has forced traditional institutions to restructure the way they conduct business.
P2P lending comes under digital lending and has significant advantages over traditional lending, with the potential to address prevalent credit-related challenges in India. One of the most distinguishable advantages of digital lending is speedier approval of credit. Credit assessments and loan disbursals on digital lending platforms have visibly quicker turnaround time than traditional loans – particularly for small-ticket credits and advances, which are most common among new-to-credit borrowers.
The digital economy has come a long way and has an amazing way ahead filled with a lot of potential opportunities for financial institutions and including all others as well. While developing the innovation in the sectors we are leaving a great mark in the economy which assists in the full potential growth of the digital economy.