- India currently has more than 2,100 registered Fintechs out-of-which 67% were setup after 2015.
- The fintech industry of India was valued at $ 50-60 Billion in FY20 and is assumed at $ 150 Billion by 2025.
- The transaction value size of Fintech is set to rise from $ 66 Billion in 2019 to $ 138 Billion in 2023 at a CAGR of 20%.
India’s presence in the global financial market was never as important as it has become today. The financial market plays a vital role in building a nation. Fintech startups are currently the new champions that are getting a good response from the users. The government’s approach towards technological advancement in every field is pushing young entrepreneurs to innovate such a product that will disrupt old market practices.
At the current point, we are standing at the topmost position in digital banking. The government’s vision to make India digital was an ambitious project that has taken off with a great start in the global finance market.
Breaking the monopoly
Banks were the only institutes after independence where financial transactions were taking place. After decades Indian banking system was not showing any signs of innovative steps to improve its operations. Later, the entry of foreign players in the Indian banking sector boosted the competition.
1991 was a remarkable year for the Indian economy. It was a decision that paved the path from a deteriorating economy to one of the fastest-rising economies. Now we have a much better vision of growing our economy at a stable pace. The government’s initiatives and changes in policy-making encouraged youth to find their own ways for the problems they face. ‘Make In India’ & PLI scheme is attracting Indian youth and foreign investors as well to bet on India’s economic growth.
Fintech startups stood as one of the favorites for investment. This sector has shown an immense level of growth since 2015. At this point, India’s financial sector stands as one of the important sectors in the world.
The Indian government was bullish about getting its financial sector online in order to get the operations in a steady flow. There are some incidents that supported the vision of making India’s economy digital.
The formation of NPCI (National Payments Corporation of India) was a bold decision; creating UPI has boosted the digital transaction in the country.
Demonetization & Digital connection
As mentioned earlier, PM Narendra Modi led government was aggressive about making India’s youth aware of their true potential for problem-solving and gave them the task of creating platforms that could fulfill the demand for easy banking transactions. It was the moment, when several creators took charge and started getting registered as fintech startups. Many of them are still providing services and have changed the mindset of the public to trust technology.
Paytm is one of the first such fintech companies that has come a long way and got registered at BSE (Bombay Stock Exchange) & NSE (National Stock Exchange). NPCI’s UPI (Unified Payment Interface), has contributed the most in the digital world of the finance sector in India. UPI became popular in no time as it was an essential demand from the market. Demonetization forced to go cashless and turn towards digital payment mode.
Rise of Fintech industry
The Indian Fintech industry consists of segments including Payments, Lending, Insurance technology, Regulation Technology (RegTech), Wealth Technology, etc.
India currently has more than 2,100 registered Fintechs out-of-which 67% were setup after 2015.
The fintech industry of India was valued at $ 50-60 Billion in FY20 and is assumed at $ 150 Billion by 2025.
The transaction value size of Fintech is set to rise from $ 66 Billion in 2019 to $ 138 Billion in 2023 at a CAGR of 20%.
Top Fintech Startups in India
Paytm, Pine Labs, Groww, Bharat Pe, Phone Pe, Lendingkart, Zest Money, Mobikwik, PolicyBazaar, Cred, Upstox, Razorpay, CoinDCX, ClearTax, Khatabook, Mswipe, BankBazaar, 5Paisa, and Jupiter Money.
– Parag Ahire