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Current Financial Capital Losing Its Monopoly in Finance Market Owing to Technology Advancement

Posted on: Nov-2017 | By: 9Dimen Group | Financial Services

Mumbai since early era of independence was known as trade center, which later was declared as financial capital of India. But presently it seems, with drastic change in the trading methods and automated financial mechanism, that the city may lose its dominance of finance capital.     

Hershil Mathur, founder of Razorpay, thought about shifting his headquarters from Jaipur after six months after setting up the company in 2013. He had three options—Delhi, Mumbai, or Bengaluru. Mathur chose the financial capital Mumbai but not the Tech Hub Bengaluru.

Mathur said, “Banking is an important part of our business but technology also plays a big role. We needed to reach a city where tech talent should be present. In Jaipur, Mathur had to work hard to get a right talent. Out of 100, only 10 of them were directly involved in banking, the rest were related to technology, sales and marketing.”

Tech startups are increasing and their focus remains on financial services. In this case, traditional banking scenario is also changing rapidly. Mumbai, Delhi-NCR, and Bengaluru are in the race to grab dominance as a fintech capital of the country. Significantly, financial technologies has emerged as a new industry in India. Companies in the fintech industry use technology to provide financial services. These companies work for insurance, asset management and payment etc.

However, Mumbai is still the financial capital and it is the headquarters of many big banks and financial institutions but now technology is becoming an integral part of finance. Mumbai with 463 finance companies is ahead with Fintech startup, but Delhi-NCR and Bengaluru are not much behind. Due to the presence of large of bank, in Mumbai, there is a lot of ease in bringing together wallet products with startup. Banks are not only developing the platform together with startup but also investing in them.

The second place is Delhi-NCR. According to figures, there are 441 fintech companies. Rajat Gandhi, founder of P2P Lending Platform Fercent, said, “Mumbai's Core Financial Services Hub status remains intact, whereas in Delhi and Gurugram there is a lot of tech talent.”

It is rapidly becoming a technology hub, so there are many advantages of being in NCR. For example, there is no lack of talent and connectivity is fantastic.