The convergence of finance and healthcare: how fintech is bridging the gap – Industry News

– By Gaurav Gupta

In recent years, India’s fintech sector has seen remarkable growth, transforming the Indian financial landscape. As technology continues to reshape traditional financial practices, the fintech sector has managed to introduce dynamic financial lending solutions. By leveraging innovative technologies to create enhanced financial solutions, the fintech industry is bridging the financial gap while providing access to financial services that were previously denied to the underserved segment.

The Indian healthcare system has become one of the most important sectors of the Indian economy and yet almost half of the overall healthcare service expenditure is paid directly by patients at the time of treatment, creating the need personalized financing options. In order to make essential healthcare services accessible to the underserved segment, the intervention of fintech becomes necessary. The industry has strived to provide comprehensive solutions for progressive healthcare, bridging the gap between financing services and the healthcare segment.

Making health services more economical

The onset of the pandemic had a significant financial impact, driving the cost of medical services to a whole new level. Subsequently, this also increased India’s out-of-pocket spending, with at least 6 in 10 patients delaying medical treatment and services. Additionally, to meet these growing medical expenses, the majority of people are forced to sell their assets or borrow money from friends and family. As a result, the fintech sector has created a harmonious ecosystem that mutually benefits healthcare providers and patients by creating a simplified digital healthcare financing solution backed by the prowess of advanced technologies. Digital financing services eliminate dependence on unsecured lending institutions, making medical services affordable.

Enabling equal access to health services for underserved people

Existing health insurance schemes introduced by the government can potentially cover 70%, or nearly 95 million individuals in India. However, actual coverage is relatively lower due to overlaps between different health insurance plans. Recent statistics reveal that only 30 percent, or 42 million, of India’s population is without any health insurance plan. This requires a revolutionary change in the landscape to meet the health needs of populations.

Considering the scenario, fintech-based healthcare solutions can give people financial safeguarding tools such as crowdfunding or simple lending solutions. Offering instant loans with easy approval and repayment plans and using QR technology can facilitate healthcare financing, making it accessible to the underserved segment with desired and appropriate EMI plans. Additionally, instant loan approval services will reduce reliance on banks, leveraging data analytics that instantly assess credit history and develop a personalized financing plan for patients.

Improving health insurance and financial planning

Health insurance remains the primary means of financing health care in the world. But overall insurance penetration in India remains very low. Not only is the insurance penetration rate low, but the amount of claims paid is only Rs 3 lakh, while the average cost of medical procedures is Rs 6-10 lakh.

Dynamic fintech companies can offer feasible health insurance that aims to create a well-integrated model focused on affordability, access and awareness. In the absence of medical insurance, the fintech industry can offer patients zero to very low point-of-care credits for medical services, which will help patients by allowing them to spread their expenses across multiple IME. By harnessing the power of AI and ML algorithms and using relevant medical and financial data, health-focused fintech can help streamline financial services in the healthcare sector.

Final Thoughts

Technological advancements have successfully paved the way for the healthcare sector, making healthcare financing transparent, secure and more efficient, thereby enabling fintech to create more personalized and cost-effective medical experiences for the end user. With the merger of finance and healthcare technology, India has opened its doors to a world of endless possibilities, thereby strengthening an affordable, accessible and more inclusive healthcare ecosystem.

(Gaurav Gupta is the co-founder and CEO of CarePay.)

(Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproduction of this content without permission is prohibited.)