The India Stack: Revolutionizing the Global Fintech Ecosystem
The India Stack: Revolutionizing the Global Fintech Ecosystem

Written by Raghu Rao

The Director of Content & Strategy, who covers how fintech is transforming and disrupting the financial industry in India. Also writes about digital financial services, sustainable finance and fintech market outlook.
Published on 31/07/2023

The India Stack: Revolutionizing the Global Fintech Ecosystem

Not every country has been as successful in their fintech implementation as India has been. Why do you think that is? India seems to have successfully circumnavigated the challenges in the past few years and emerged victorious in leading the fintech adoption race. What is the reason?

India Stack, that’s the primary reason for India’s success with fintech. India Stack is a combination of technological projects which is collectively unlock the economic primitives of identity, data, and payments at population scale.

What makes the India Stack Work?

India stack is successful because of three very important elements, the Jan Dhan, Aadhar and the smart phone usage.

Jan Dhan, a free savings account initiative spearheading by the government increased financial inclusion of un banked populations too hence facilitating fintech services usage and adoption

Aadhar, which is the bed rock of a nationwide biometric identification system, made digital identify, verification and authentication a seamless experience. Hence banks, fintechs, and other financial service providers were able to speed up the process of delivering financial products and solutions.

The smart phone penetration and the increased mobile usage facilitated mass usage of mobile banking and financial apps which moved India’s economy to a predominantly cashless economy, paving the way for fintech growth and adoption at a pace which puts India at 85% fintech adoption compared to the global average of 63%.

Apart from these, India built a robust unified payments interface (UPI)—an instant payment system developed by National Payments Corporation of India which has revolutionized the payments landscape in India.

The ONDC initiative, the Account Aggregator (AA) framework are two disruptive programs which are making digital commerce solutions open for all and credit delivery based on cash flows easier respectively.  Both the ONDC and AA framework are helping businesses and SMEs thrive in India and encouraging small businesses to adopt financial technology-based services.

India has been successful in its fintech foray due to the government’s resolve on driving financial inclusion, solving problems at scale, implementing evolving technologies for greater good. This has made fintech challenges in India seem far less critical and has given rise to innovation in finance and a boost to the economy of the nation.

The 2nd Fintech India and Summit Awards, an industry curated event is going to a focal point of discussions around the future of India financial services industry as well as the outlook on the Indian fintech ecosystem. if you don’t want to miss out on the conversation, you are welcome to register to reserve your spots for this exclusive 2-day summit.

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