The devaluation of 80 per cent of India’s currency overnight has seen a large-scale reaction, with alternative finance players called on to assist banks with digital transformation processes.

Indian banking institutions will upgrade operations systems and specialist infrastructure to match digital requirements, following the demonetisation of 80 per cent of the country’s currency, as announced last week.

The growing Indian fintech industry, more frequently regarded as disrupters rather than enablers in the South Asian nation, have been called upon to assist traditional services with cooperative offerings to support the government initiative of a no-cash society and keep citizens happy.

Blockchain is also getting a welcome boost in the market, with increased interest in Bitcoin following the demonetisation move. Increased interest has been shown in biometric technology, cryptocurrency and payments initiatives as well.

Alternative lending start-up, Capital Float, founder, Sashank Rishyasingra, said that collaboration was key to helping the country adjust to a new phase of monetisation and would fulfil the government agenda for innovative alternatives, while also ensuring customers would not lose out.

“Through a partnership like this, the banks get access to new customer segments and innovative products,” he said.

“It has been said that banks consider fintech start-ups to be competitors and disrupters [but] it gives us access.”