CRED announces launch of CRED Mint, ‘peer-to-peer (P2P)’ lending feature

Fintech firms and startups have come a long way in India. Discuss the role that these new innovations play in promoting the objective of financial inclusion in India. (250 Words)

 Approach:

• Introduce by giving a definition of Financial inclusion
• Through a diagram, show various types of Fintech innovations like peer-to-peer lending, small credit, payments banks, etc.
• Enumerate the role that these fintech innovations play in bringing financial inclusion - through reducing the cost of banking service delivery, giving micro credits etc.
• Limitations of Fintech Firms in bringing financial inclusion -  like Poor financial literacy, Digital divide, RBIs regulatory regime, -underdeveloped insurance sector etc.
• Government's incentives and support to Fintech firms.
• Way Forward / Conclusion