Healthcare in India is undergoing a major transformation driven by rapid technological advances, policy reforms, and growing awareness of the need for affordable and accessible quality health services.
As a country with a large and diverse population, the challenges in healthcare delivery are enormous, ranging from unequal access to services to affordability issues. However, the rise of financial technology (FinTech) and financial innovations are playing a key role in addressing some of these gaps and making healthcare more inclusive and efficient. In this article, we explore how FinTech and finance are transforming the healthcare sector in India.
Expanding economic access to health care
One of the most significant challenges in India's health system is the lack of economic access to health services, especially in rural and underserved areas, but surprisingly The same is true in urban areas. Despite government schemes like Ayushman Bharat aimed at providing health insurance to the underprivileged, many Indians still struggle to pay out-of-pocket medical costs. This is where fintech steps in to fill the gap.
FinTech companies are creating platforms that offer healthcare payment apps. Microloans for healthcare, crowdfunding solutions, and health insurance plans for individuals who have not previously had access to such services.
For example, platforms like Ketto allow individuals to raise funds for medical emergencies, bypassing the traditional barriers of bank loans and high-interest borrowing. Similarly, Affordplan and CarePay partner with hospitals to provide patients with customized savings plans to help them save for future medical expenses. QubeHealth-Pay (Author is Co-Founder & CEO) helps users pay for any medical bill using UPI payment platform across India, reducing the cost of any medical bill while getting cash instantly I'm trying to make it possible. , through free medical loans within the app.
These platforms not only provide an alternative to traditional payment methods such as bank loans, but also provide a faster and more efficient way to access medical funds, especially during emergencies. The use of digital technology provides instant credit evaluation and payments, allowing patients to receive financial assistance almost immediately.
Digital payments and health insurance
India's FinTech ecosystem is also playing a key role in revolutionizing health insurance, a traditionally underpenetrated market in India. Although government programs are designed for low-income groups, penetration of private health insurance remains low. This is due to multiple factors, including the complexity of insurance products, limited distribution, and lack of public awareness.
However, with the advent of digital payment systems, the process of purchasing and claiming health insurance has become more streamlined. FinTech platforms like 'PolicyBazaar' have simplified insurance comparison and purchasing, allowing individuals to choose the best health insurance that suits their needs. Additionally, the integration of the Unified Payments Interface (UPI) has made it much easier for people without traditional bank accounts to pay their insurance premiums.
In addition to this, some FinTech startups are offering insurance products tailored to the specific needs of consumers. For example, Digit Insurance offers flexible health insurance policies that can be customized according to a customer's age, lifestyle, and medical history. Such innovations are helping to drive insurance penetration to a wider audience, including rural areas where traditional insurers have struggled to gain a foothold.
Fusion of health tech and fintech
The convergence of HealthTech and FinTech is another important trend in the Indian healthcare landscape. The proliferation of telemedicine platforms and digital health services has increased the need for seamless integration between healthcare providers and financial services platforms. This has led to numerous collaborations between FinTech and HealthTech companies aimed at increasing the accessibility and affordability of healthcare.
For example, telemedicine platforms such as 'Practo' and '1mg' integrate payment gateways and credit solutions into their systems, allowing patients to access medical services and use digital wallets, credit cards, or buy now and later. Pay with (BNPL) option. This integration allows patients to easily access medical services without incurring high costs right away.
Additionally, FinTech solutions are driving the growth of subscription-based healthcare models, where patients pay a fixed amount on a regular basis to receive continuous access to remote consultations, lab tests, and drug delivery. You can. This model is particularly useful for managing chronic diseases that require continuous treatment.
Funding health infrastructure
Beyond individual healthcare services, FinTech is playing a pivotal role in funding the development of India's healthcare infrastructure. Traditional banking institutions have been reluctant to lend to healthcare startups and small providers due to the perceived higher risk. However, the rise of alternative financing platforms has made it easier for hospitals, clinics, and diagnostic centers to access funds.
Peer-to-peer (P2P) lending platforms and non-bank financial companies (NBFCs) have emerged as important sources of financing for small and medium-sized healthcare enterprises (SMEs). For example, platforms such as Lendingkart and Yubi offer unsecured loans to healthcare providers looking to expand their services or upgrade medical equipment. This is particularly important in tier 2 and 3 cities, where demand for quality health infrastructure is increasing, but financial support is traditionally limited.
These FinTech platforms are helping expand healthcare infrastructure in underserved areas by providing faster and more flexible financing options. As a result, patients in rural and semi-urban areas now have access to better medical facilities, reducing the need to travel long distances to urban areas for treatment.
Enhanced affordability through health wallets and EMIs
Affordability remains a key issue in healthcare, especially for high-cost treatments such as surgery, cancer treatment, and advanced diagnostic tests. While insurance can cover some of these costs, out-of-pocket costs often remain high. To address this, some fintech companies are developing health wallets or EMI (fixed monthly installment) solutions specifically for medical expenses.
For example, 'Health EMI Cards' offered by companies like 'Bajaj Finserv' allow patients to easily convert their medical expenses into interest-free EMIs. These cards can be used across a network of affiliated hospitals, pharmacies, and diagnostic centers, making healthcare more affordable for middle-class families who can't afford large lump-sum payments. Masu.
Similarly, digital health wallets are being introduced that allow individuals to save money by focusing on their medical needs. These wallets often come with additional benefits such as discounts on medical services and cashback on drug purchases. These solutions help individuals manage their healthcare costs more effectively by promoting the concept of planned healthcare savings.
Financial inclusion through a digital healthcare ecosystem
India has made great strides in financial inclusion in recent years, mainly due to the digital payments revolution and government initiatives like the 'Jan Dhan Yojana'. This financial inclusion effort is now intersecting with the healthcare sector, as FinTech platforms are bringing affordable healthcare solutions to underserved populations.
For example, the use of “Aadhaar-based” digital KYC (Know Your Customer) processes has made it easier for individuals to access financial services such as health insurance and medical loans. With an Aadhaar-linked bank account, people living in rural areas can now subscribe to health insurance and pay for medical services through digital wallets and UPI.
Additionally, the emergence of a healthcare ecosystem that integrates financial services is fostering a more inclusive healthcare environment. For example, companies like Apollo 24/7 and PharmEasy have built comprehensive digital healthcare platforms that offer everything from remote consultations and diagnostics to drug delivery and health insurance, all within a single app. I am. This ecosystem approach not only simplifies access to healthcare, but also makes it more affordable through partnerships with FinTech companies that provide easy payment and financing options.
conclusion
The role of fintech and finance in Indian healthcare is becoming increasingly prominent, providing innovative solutions to some of the sector's most pressing challenges. From expanding access to healthcare through digital payments and microloans to financing healthcare infrastructure and promoting affordable healthcare services, fintech is reshaping the way healthcare is delivered and consumed in India. Masu. As the healthcare and fintech sectors continue to evolve, their convergence has the potential to drive even greater innovation and make healthcare more inclusive, efficient and affordable for millions of Indians. .
