GROWTH OF FINTECH IN INDIA
Fintech is the future, and India is one of those nations that have an incredibly growing Fintech sector. At present, India holds 3rd position. India has almost up to 2100 registered Fintech companies. These Fintech industries are working in the fields of investment tech, banking, lending, and payments.
India secures this position by getting an 87 percent adoption rate. If we consider the report of Indian NITI Aayog, the Indian Fintech sector holds almost US $27.6 billion in cumulative funding, which is expected to reach up to US $150 billion by 2025. 21 Fintech has gained the “Unicorn Status.” It indicates that India has an excellent ecosystem for this new conversing revolution.
For the last five years, Fintech industries have been evolving in India, and the pandemic has given it a boost.
Here are the reasons behind the growth of Fintech in India:
- Involvement of the latest technology
- Artificial Intelligence does the jobs in a couple of seconds which took weeks for human collaboration
- Capital availability
- Increasing interest and ability of Indians in investment
- Earning youth believes in innovation rather than old traditional investment or saving methods
- Increasing telecommunication and infrastructure facilities brings everyone online
- People are not satisfied with conventional financial services due to non-availability
- Government Initiatives and flexible regulations for Fintech investment
- Less infrastructure is required in comparison with traditional financial sources
Now let’s discuss some statics:
- The Indian Fintech industry sees upon these fields:
- Wealth generation
- Personal Finance solutions
- SME Finance solutions
- Micro Instant loan
- Education and research
- Health and Medical Science
- Agro technologies
- Insurance and Regulation Technology and many more fields
Fintech industries are looking forward in every possible aspect to spread its roots. This action forces the traditional organizations to update themselves or become a part of Fintech.
- About 67 percent of the existing Fintech industries in India have been established in the last five years only.
- After the UPI facility, almost 313 Banking organizations perform 5.4 Billion transactions which cover $128 Billion amount.
- According to S&P Global Market Intelligence, India topped among Asia-Pacific (APAC) countries in Fintech investment with 121 deals even in Covid pandemic time.
- The Reserve Bank of India starts an initiative to build a blockchain-based cross-border payment system.
- In India, 2 out of 3 transactions will soon be digital.
- The Indian Fintech sector gets funding of $8.53 Billion in 2022.
- In India, an Inter-Ministerial Steering Committee (IMSC) was established on 05/03/2018, and International Financial Services Centre Authority (IFSCA) in 2020 to enhance and manage Fintech regulations.
- At the same time, the Joint Working Group (JWG) on Fintech was cofounded by India-UK and India-Singapore.
- 21 unicorns of India include Acko, BharatPe, BillDesk, CRED, Cred Avenue, Coin DCX, Chargebee, DIGIT, Groww, Mobiwik, Oxyzo, Open, Paytm, PhonePe, Policy Bazaar, Pine Labs, Razorpay, Slice, Zerodha, Zeta
- If we consider the financial reports, India still has a largely untouched population that still believes in the traditional financial system. These entire sections have significantly less awareness and access to the latest scenario. If this mass could be associated with a part of the Fintech revolution, then India could become number one in Fintech Sector.
The above-given data entitled that the future of Fintech in India is very bright. India holds 3rd largest Fintech industry only with 30 percent population involvement. The Indian Government’s initiatives, capital availability, youth involvement, foreign funding, latest technology, and developing infrastructure are some key points that ensure the growth of Fintech in India.