How is the fintech sector in India poised for exponential growth?
FinTech has had a significant impact on the global financial industry over the past decade. India is recognized as a strong FinTech hub globally and as the Indian entrepreneurial landscape continues to develop, more FinTech use case-led businesses will be developed and more investors will support these businesses.
The promising India FinTech market is expected to reach $1Tn in throughput and $200B in revenue by 2030. FinTech funding recorded a 3X jump in 2021. This growth has been driven by an organic and collaborative ecosystem, while being supported by central government initiatives. India stack and innovation from FinTechs has driven the financial inclusion drive that we see in the country.
We are pleased to partner with Chiratae Ventures for this report which delves into the Indian FinTech ecosystem and emerging trends across regulatory innovation, technology advancements, new business models, industry convergence, inclusive digital financial services and India emerging as a talent hub. Our insights are based on our work with both established companies and startups on their business and technology strategies, which tells us that Indian FinTechs have converted market challenges into opportunities through a focus on innovation, leading FinTech and non-FinTech players to build super apps to engage customers across a wider range of products. Even as digital lending and the buy now pay later model has become mainstream, huge opportunities are emerging in InsureTech and WealthTech with future potential to be exploited in Agri+FinTech and Prop+FinTech. Through the intersection of FinTech and the healthcare sector, the large gap of unaffordability in the HealthTech value chain can also be addressed.
In the report, we also look at the role of the regulators who have actively encouraged innovation through regulatory sandboxes, new distribution models and the launch of innovative products. Although a few regulatory challenges need to be resolved, it is expected that regulators will continue to push for a digital agenda. Finally, we examine the role of the vast availability of technical talent in India, which has seen 5X growth, also making India the world’s largest talent market and the key to talent acquisition for global companies.
To conclude, due to emerging technology, changing cultural trends and a favorable regulatory landscape, FinTech has grown beyond borders. FinTechs can expect future technological breakthroughs to further drive the expansion of the market and revolutionize the production, delivery and consumption of financial products and services in the coming years.
