Breaking Down the Massive Growth of the Indian Fintech Market and its Future

India’s financial technology (fintech) industry, though fairly young, has grown significantly in recent years. The Indian fintech market is valued at $584 billion in 2022 and is expected to reach $2.1 trillion by 2030, with a CAGR of 18% from 2022.

• The growth that the fintech industry is seeing currently, is due to a variety of factors like rapid technological growth, a promising economy and sustained government support.
• The latest wave of financial technology, FinTech 4.0 (since 2018) has brought about groundbreaking technologies like blockchain and open banking.
• The Indian fintech industry is the fastest growing in the whole world with a FinTech adoption fee of 87% as compared to the global average of 64%.
• Many government initiatives have also supported this growth: IndiaStack, UPI, Aadhar, GSTIN are some examples which support the development of the industry. Investors are also pouring money into the sector.
• The fintech space is made up of companies from different sectors who use technology to facilitate and simplify finance. Some examples are: Companies that make it easier to pay (Payment companies), get loans (LendingTech), buy insurance (Insurtech), invest your money (InvestmentTech), and even comply with regulations (RegTech).
• Despite a slowdown in 2023 with respect to capital gathering, lending and investment remained the hottest areas in FinTech, with lending expected to be a major driver of future growth.
• LendingTech & InvestmentTech are projected to make up over 60% of the market by 2030, fueled by strong growth forecasts with 22% & 30% CAGR respectively from 2022.
• Due to the dynamic and rapidly growing nature of the fintech industry in the country, India is set to emerge as a global leader in fintech, overtaking USA and China.

Blog By: Sundeep Punmiya, Assisted By: Megh Jadhav