India has the highest adoption rate of fintech in the world, at 87%, which is much higher than the global average of 64%. India is leading the fintech revolution for both developing and developed countries thanks to the increase in digital penetration during the pandemic.
The market for Indian fintech was worth $50 billion in 2021 and estimated at $150 billion by 2025.
There are 6,636 FinTech startups in India, which is one of the fastest growing Fintech sectors in the world.
“There is an explosion of Fintech Innovation and Enterprise in India. It has turned India into a leading Fintech and Startup Nation in the world. The future of Fintech and Industry 4.0 is emerging in India” – Narendra Modi, Hon’ble Prime Minister of India.
Credit disbursement through digital platforms is now significantly influenced by digital financial services. This initial success can be ascribed to the Jan Dhan-Aadhaar-Mobile (JAM) trinity revolution, which served as the foundation for direct welfare transfers and credit accessibility. It allowed for the penetration of unserved and underbanked sectors of our sizable market that brick-and-mortar banks were unable to do. The country’s user base grew as a result of the transparency it provided, which was made possible by its versatility, availability in multiple languages and robust interface. The friction between financial institutions and retail clients has decreased and the Indian economy has attracted money.
Additionally, fintech companies have been crucial in narrowing the accessibility and gender gaps in financial services. They assisted in overcoming obstacles brought on by limitations on women’s physical mobility and job loss during a period of financial hardship due to COVID. Fintech firms made it simple to sign up, conduct transactions and apply for loans, which was just one of the many reasons why their cashless approach appealed to a female client base. As a result, fintech companies have benefited both individuals and corporations.
Also take note that in January 2022, RBI established an internal fintech department. This was established in an effort to encourage the country’s digital financial services sector to expand orderly, identify problems and obstacles, stimulate constructive innovation, increase incubation and regulate the fintech sector for its efficient operation.
It’s intriguing. The Indian economy is being helped through a period of Knightian uncertainty brought on by a pandemic and the war in Europe by an industry that is only a few years old. A convergence of banktech, insurtech and wealthtech is ushering in the Fourth Industrial Revolution, from the introduction of Digital India and the Atal Innovation Mission to our financial inclusion credo. Digital tools that have the potential to help achieve not just that but much more in terms of an economic boost have helped scale up what started as a financial inclusion agenda.
