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Behind the Growth- The Reasons and Factors Supporting the Growth of Indian Fintechs

  • The Indian fintech industry has seen explosive growth in the past 5 years. The Indian FinTech industry’s market size was around $50 Bn in 2021 and is estimated at ~$150 Bn by 2025.
  • Major segments under Fintech include Payments, Digital Lending, InsurTech, WealthTech
  • The Payments landscape in India is expected to reach $100 Tn in transaction volume and $50 Bn in terms of revenue by 2030.
  • India's digital lending market was worth $270 Bn in 2022 and is expected to reach $350 Bn by 2025.
  • India is the 2nd largest Insurtech market in Asia-Pacific and is expected to grow by ~15X to reach $88.4 Bn by 2030; India is poised to emerge as one of the fastest growing insurance markets in the world.
  • The Indian WealthTech market is expected to grow to $237 Bn by 2030 on the back of a growing base of retail investors.
  • India’s financial inclusion has improved significantly over calendar years 2014 to 2021 as the adult population with bank accounts increased from 53% to 78%.
  • The RBI plans to achieve a 3x increase in digital payments, 150% increase in PPI transactions, and an increase in card acceptance infrastructure to $25 mn by 2025.
  • Account Aggregator Framework (AA): AA is an advanced framework of sharing consent based financial information between Financial Information Providers (FIPs) and Financial Information Users (FIUs). There are 23 banks on board with the AA framework and more than 1.1 Bn bank accounts are eligible to share data on AA.

Blog By: Shivam Pawar, Assisted By: Megh Jadhav