Written by 3:59 pm Business, Cash Flow, FinTech, Technology, Virtual CFO Views: 14

Descrypting India’s Fintech Future – 2022

India's-FinTech-Future

Fintech’s future in India is going to be intense as the market size of Fintech companies in India is expected to reach $150 billion by 2025. 

How Fintech is changing the world can be guessed by the fact that FinTech is expected to be $1 Tn in total market value and $200 billion in revenue by 2030. 

The other good news for Fintech is that Indian digital payments have been holding the ground strongly and will continue to expand rapidly. More than $9Bn in investments were made in digital lending in the last five years. Read on to look at the latest Fintech news and Fintech trends in India!

Monitor and keep track of regulatory compliances

With over 50% of India’s population adopting Fintech in some form, RBI has started focusing more on how Fintech companies work. This new focus has invited mixed reactions from the Fintech industry. 

For instance, RBI notification on credit lines on PPIs has created some new Fintech challenges and trends. In contrast, others appreciate active encouragement of innovation through regulatory sandboxes, upgraded distribution models, and regulators’ launch of innovative products.

Spread of Fintech opportunities in India

More than 50% of the Indian population is the working population group. This, combined with the fact that India has the 2nd highest number of smartphone users worldwide, shows that the Fintech new age companies are the future. 

There exists a large swath of area for them to capture. As there are Fintech opportunities, the same goes for challenges. Many Indians still have lots of apprehensions about Fintech and digital payment. To include those Indians into the digital bandwidth is a mountain to submit for Fintech.

Future Technologies for Fintech

Technologies like Artificial Intelligence, big data, and NeoBanking can prove very beneficial in the expansion and growth of the Fintech industry. 

Fintechs can help onboard their customers in a more concerted manner. Chatbots, humanoids, facial and iris recognition, etc., will make the workload of the Fintech sector easier and more manageable.

Coming of Buy Now and Pay Later (BNPL) option

The option of Buy Now Pay Later is emerging and accelerating not only in B2C but in the B2B payments space too.  

This will emerge as a boom and revolutionize customers’ spending habits. It also will change the pattern of how Fintech companies make money.

WealthTech, AgriTech, PropTech, and FinTech

Whether it is Wealth tech, Agritech, or Proptech, every field is becoming automated and integrating technologies like machine learning and artificial intelligence. 

Wealthtech focuses on automation; some of the use cases of WealthTech can be Robo Advisors, Digital Brokerage, Robo Retirement, and Digital Portfolio Management. 

In PropTech, real estate companies like Zerodha, Groww, and Upstox employ finance management using AI to facilitate costing, investments, and negotiations digitally, thus- incorporating revolutionary changes like Crypto, blockchain, and metaverse-enabled real estate. 

And Agritech is none behind them when it comes to optimizing several operations, setting up an online marketplace, empowering digital-enabled logistics, and embracing machinery automation through cutting-edge technologies.  

In conclusion, due to emerging technologies, changing trends, and a favorable regulatory landscape, FinTech has been growing beyond boundaries – including Agri+FinTech, Wealth+Finetch, and Prop+FinTech.

FAQs

1. How big is the FinTech market in India?

The size of the Fintech market can be gauged by the fact that India has the highest Fintech adoption rate in India. India is amongst the fastest growing Fintech market and 3rd largest Fintech ecosystem. The Fintech sector in India has seen funding of $8.53 Bn (in 278 deals) in FY22.

2. Why is Fintech the future?

Fintech’s future in India is set to be in multiple-digit growth. The Fintech transaction value size is set to grow from $66 Bn in 2019 to $138 Bn in 2023, at a CAGR of 20%. 29% is the expected RoI in Fintech projects globally, the highest amongst various industries.

3. What is the risk of FinTech?

The significant risks of Fintech include increasing cyber frauds and thefts, rising number of competitors, sudden economic changes, and keeping pace with ever-changing technologies, among others.

4. What is the size of the FinTech industry?

Fintech trends in India show that the Fintech market is expected to grow to $515 billion in book size by 2030. Global Fintech trends and reports tell that this industry is continuously rising. As of July 2022, India has 23 Fintech companies, which have gained ‘Unicorn Status’ with a valuation of over $1 Bn. 

How we can help! 

That being said, the Fintech economy is in its big play and thriving like never before. That’s why it’s better to prepare and equip yourself with the latest trends – so you can never miss out on any opportunity.  

We at FinaAccountants, help business firms with consulting— Our team of professionals provides you with real market insights to compute benefit-availing trends along with possible risk. 

Book a call!

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