India has seen a rapid rise in Fintech, thanks to a strong banking system which has over 137 banks and roughly 120K branches. Which makes India, a country with one of the highest numbers of bank accounts internationally, with deposits equaling $1.35 trillion and outstanding credit of $900 billion. This in itself shows the prowess of our thriving economy.
India’s financial landscape has transformed primarily because of some well thought out initiatives which are aligned with making India a $5 trillion economy, and fintech has been a welcome value addition to this economic path the country has taken. Some of the key initiatives that are driving the financial technology landscape in India are Jan Dhan, Aadhar, UPI, Central Bank Digital Currency (CBDC), Account Aggregator, the Open Credit Enablement Network (OCEN), Digi locker, and the Open Network for Digital Commerce (ONDC).
The factors that have helped the India fintech ecosystem evolve are:
The question of accessibility and financial inclusion. The opportunity has grown so big because fintech players have scope to add sustainable value and present business models which covers the entire Indian demographic. Be it insurance, lending or payments, India provides the need for driving accessibility to financial services across a huge user landscape.
Efficient SME growth. The second opportunity is India’s unique advantage, talent. India is loaded with technology talent and a thriving innovation mentality, this along with developing infrastructure has emerged in developing financial products for the SME and B2B sector. With SME sector’s need for specific financial solutions, credit lending, customized insurance, in platform payments etc. the growth of fintech to support these needs has been phenomenal.
Indian Consumerism, this is the penultimate factor which has shaped the fintech opportunity in India. India consumers are not settling down for bad services and products, with time consumerism has evolved to expect top class customer experiences, and fintech models help fill this gap and drive unique customer experiences.
So, these are the key factors which have redefined the Indian Fintech ecosystem and paved the way for innovation in financial services and financial technology offerings. India’s Fintech sector is looking are further growth and a future filled with amazing opportunities and potential and will help India’s vision to be a global leader and economic powerhouse.