The fintech landscape in India is booming. Driven by opportunity and innovation the fintech industry is poised for sustained growth and success. But fintech is critically intertwined with technology and innovation. If fintech has to keep growing, it has to keep adopting disruptive technologies which are shaping the future of economies.
So, what technologies are going to influence the future of fintech in India? A market which is expected to be worth $ 1 trillion by 2030. What technologies will further embolden the payments, lending, wealthtech, insurtech and regtech domains? Let us look at the technology trends.
Embedded Finance
What is embedded finance? Well, it is the integration of all financial services such as payments, lending, insurance through APIs and platforms. Embedded finance will revolutionize how companies access and utilize financial services provided by third parties. The embedded finance market globally looks positive and expected to reach a phenomenal $ 606 billion by 2025.
Open Banking
Triggered by UPI, India seems to have already adopted the tenets of open banking. An ecosystem where the banking world merges with rest of engagement points. With strong initiatives by the government such as Aadhar, UPI, Account aggregator, OCEN, DEPA and PCR, open banking has gained quite a bit of traction in India. In terms of market size, the open banking market is expected to grow to $395 billion by 2026.
Decentralized Finance and Blockchain
Crypto currency has been making a lot of noise lately, albeit sometimes for the wrong reasons. However, it is here to stay which makes DeFi and blockchain technology critical. How well DeFi will penetrate the Indian market is to be seen, but blockchain has made quite a bit of inroads in streamlining financial services in India. The DeFi market is expected to grow to $ 173.3 million by 2027.
Beyond these three technology trends, some other innovations that might find traction in the Indian landscape will be virtual cards, and voice enabled payments. Both have shown tremendous potential in terms of enabling next level customer experiences. Fintech in India is rising and its future is going to be shaped by innovation largely and adoption fundamentally. If you are a fintech technology company and keen on showcasing your innovative solutions to a larger financial canvas, then you should be at the 2nd Fintech India Summit & Awards