The Boom of Fintech- Tracking the Growth of the Indian Fintech Sector

The fintech sector in India has seen immense growth in the past 5 years and is set to reach new heights in the next few years as well. As of 2021, India's Fintech adoption rate was touching 87%, which is significantly higher than the global average of 64% (EY Global FinTech Adoption Index 2019).

• The Indian government's initiatives, like Digital India and Jan Dhan Yojana (2014) have been of paramount importance for boosting the growth that the sector has seen. Digital India led to an increase in digital payment transactions by over 55% in 2020 alone (Ministry of Electronics and Information Technology, 2021).
• The Fintech sector saw a flow of $2.7 billion in venture capital in 2020, a 100% increase from the previous year (KPMG, 2021).
• Factors such as a global economic slowdown, the Paytm listing failure, and regulatory uncertainties led to somewhat of a slowdown of the fintech growth recently.
• The 2016 demonetization significantly boosted digital payments, with a 76% increase in mobile wallet transactions within just three months of the implementation of the policy (Reserve Bank of India, 2017).
• Emerging technologies like AI and blockchain are estimated to revolutionise the fintech space. Blockchain transactions are projected to save the banking industry up to $27 billion annually by 2030 (Accenture, 2019).
• Collaborations between standalone banks and Fintech startups have risen greatly, with over 120 partnerships formed in 2020 alone (FICCI, 2021).
• India's Fintech sector is on the verge of a transformation, through excellent innovation and growth. By overcoming regulatory and cybersecurity challenges, and leveraging new technologies, the sector is set to significantly impact India's financial landscape, promoting inclusivity and efficiency on a global scale.

Blog By: Ankush Mhaske, Assisted By: Megh Jadhav