The Future of the Indian Fintech Industry

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India, the third-biggest Fintech landscape worldwide, is home to more than 200 Fintech firms, with 67% of the existing companies developed in the last five years. With an 87% rate, India is further ahead of the 64% global average Fintech embracement race. A study by EY found that India’s promising Fintech sector will generate a $200 billion profit and $1 trillion in Asset Under Management (AUM ) by 2030.

The Indian Fintech industry’s growth is driven by several encouraging government and applicable regulatory initiatives, a flourishing funding environment, large demographic opportunities, a booming VC ecosystem, access to technology and talent for entrepreneurs developing new India, and high Fintech acceptance.

Market trends

The Fintech sector in India is advancing with industry trends to satisfy customer needs, regulatory demands, and business goals. Here are the market trends impacting the Fintech industry.

Ecosystem banking

India’s ecosystem banking is assisting banks to improve customer experience and create long-term consumer value. It also provides a single fix to clients who previously depended on disjoint and compound procedures across various applications. The rigid technological applications’ complexity and high costs drove banks to a partnering or purchasing approach outlook to develop newer services.

Insurance technology

With the apparent increase in consumers joining the digital bandwagon, India’s insurance tech sector is set to flourish in 2023. An S&P Global Market Intelligence report indicated that insurance tech fundraising has, in recent years, been rapid across Asia. However, Indian and China innovators seem to be better positioned to rise past a supporting role to challenge the region’s sector incumbents. Over the past few years, India’s insurance technology scope has grown significantly, with high funding growth empowered by ingenious business models.

Alternative financing methods

Alternative financing method usage, especially recurring revenue funding’s popularity, is expected to grow in 2023. The recurring revenue funding lets businesses turn their ongoing profit avenues into instant capital. This approach lets founders get their customer’s lifetime value upfront while helping them balance cash inflow with new customer acquisition costs. Recurring revenue provides an expedited and flexible way for businesses to get fast cash flow boosts without financial agreements, including guarantees or collaterals usually needed in traditional debt financing.

Case studies


Razorpay is an Indian payments solution that lets businesses process, disburse, and accept payments using its product suite. Users can access every payment mode, including debit card, credit card, UPI, net banking, and accepted wallets like Mobikwik, JioMoney, Airtel Money, Ola Money, PayZapp, and FreeCharge. The Razorpay platform has more than 10,000 companies as its clients and has, since its inception, processed over 30 billion dollars in payments. Companies can access completely-functional current accounts, automate payroll compliance, and advance their payouts. Businesses and gaming platforms like Indian roulette casinos online can automate bank transfers, collect recurring payments, manage their marketplace, and more. 


Paytm was launched in 2010 by Vijay Shekar Sharma as a digital prepaid mobile recharge portal. Since the company was among the first to provide this service, its customer base increased rapidly, and in 2013-14, Paytm expanded as a semi-closed wallet. Thanks to the swift mobile penetration trend in India, Paytm has developed 100 million plus wallets, which handle more than 75 million monthly dealings.

Government initiatives

The Indian government has introduced initiatives contributing to the Fintech industry’s growth, including:

Fintech-related regulations

The Reserve Bank of India set up a working group to address regulatory arbitrage, ascertain principle-back regulations, and ensure tech neutrality to provide a level playing ground.

Data privacy and security policies

The robust cybersecurity and information security measures built by RBI ensure compliance while aligning security requirements to business goals.

Data authentication solutions

Central KYC, Udyam, Account Aggregator, and other solutions ensure a seamless growth of financial services to customers.

Strong digital infrastructure

Initiatives under India stack and Digital India have been effective for consumers embracing digitization.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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