The acceptance and adoption of a paperless and digitized approach have led to a transformation in the banking industry. Fintech has acted as a facilitator in promoting an unconventional approach to money matters.
With 6,639 Fintech in India of which, 21 of them stand tall as unicorns, India is the third-largest Fintech-related ecosystem in the world. Between 2016 to 2021, the Indian Fintech companies have been able to raise USD 16.5 billion which is approximately 60% of the capital entering India over the past 3 years. Furthermore, investors have invested approximately USD 24 billion into more than 1,000 companies functioning in the field of financial technology.
Investors see the great potential Fintech holds in advancing the banking industry and digitizing the remaining aspects of banking.
Fintech On The Rise in India
- Indian Fintech adoption rate stands at 87% as compared to 64% globally. Going by this statistic alone, India can be viewed as a potential market for investors. Furthermore, the prediction of the Fintech market to grow at approximately 20% in the coming years goes on to show the leading streak India is showcasing in the Fintech arena.
- India has more than 80 million internet users and various government initiatives to target the underserved population by leveraging the internet and technology give Fintech a cutting edge to showcase its capability. Digital payments have acted as a bandwagon in this transformation.
- India’s population and diversity allow Fintech to experiment and innovate personalized and customer-centric solutions for the targeted audience. Irrespective of whether the service is accepted by the masses or not, it allows Fintech to innovate and improvise.
- 3.7% of the Indian population can avail of insurance and the latest reports suggest that tech-based insurance providers are at an all-time high owing to their robust online services, especially after the pandemic.
- Growing computing power, internet connectivity and penetration coupled with customer awareness and demand for financial services play a significant role in boosting Fintech services in the market.
- The rise of Super Apps which provide a bundle of services on a single platform has augmented Fintech acceptability as Super Apps have successfully created a complete customer journey on their platform.
- Different branches within the Fintech ecosystem like PayTech, LendTech, RuralTech, WealthTech, InsurTech, etc., have allowed India to showcase its ability in innovative technology-driven services in comparison to other countries.
India’s drive towards becoming a global leader is addressed by other countries too who look to collaborate for allied growth in this field. For instance, the UPI-PayNow linkage between India and Singapore is a milestone in the development of infrastructure for cross-border payments, financial inclusion and transparency in the overseas payment system.
Conclusion
Various microeconomic factors, government initiatives, supply-side factors, blockchain advances, funding, etc., have played a major role in revolutionizing and building India as the Fintech leader in the global market. As per experts, India is set to grow exponentially in the coming years with an estimated figure of USD 150 billion in valuation by 2025 spearheading the Fintech revolution in the true sense!