Fintech Market in India 2024-2029
Description
Fintech refers to the integration of advanced technologies to enhance the application, delivery, and efficiency of financial services. Fintech companies utilize technologies such as artificial intelligence (AI), data science, robotic process automation (RPA), and blockchain to transform traditional financial sectors, making them faster, safer, and more efficient.
The Indian fintech market is one of the fastest-growing technology segments, driving innovation across various applications, including loans, payments, stock trading, and credit scoring. The various services provided in the fintech sector are regtech, payment/billing, insurtech, money transfer/remittance, mortgage/real estate, and others (lending, capital market, and wealth management.
As per NCPI, over 3,000 fintech startups are registered with the DPIIT in India. However, startups and the Indian government are coming up with dynamic solutions to cope with these issues and ensure the growth and success of the fintech industry across the country.
Market trends:
Neobanks, which are entirely digital financial service providers without physical branches, are gaining prominence in the Indian fintech market. These banks operate exclusively online, offering a range of financial services through digital platforms.
Regtechs help fintechs to stay compliant with regulations and they use cloud technology, ML and big data to identify and prevent threats. Fintechs that leverage regtechs are eventually expected to enjoy significant cost savings.
Market drivers:
The rapid growth of India's middle class has played a significant role in the expansion of the Indian fintech market. With higher disposable income, fintech companies have effectively bridged the gap in the market by offering accessible and innovative financial solutions.
Over the years, India has witnessed a massive digital transformation. The launch of UPI by the NPCI, the government-backed Digital India program, and RBI’s approved fintech sandbox, are the primary reasons behind the evolution. The Digital India initiative had a significant impact on improving the population’s digital maturity.
Key deterrents to the growth of the market:
There has been a significant drop in fund raising in Q2, Q3, and Q4 of 2023 and Q1 of 2024. Raising capital from the right investors is one of the major hindrances that fintech entrepreneurs face. The fintech sector received a total funding of USD 795Mn in H1 2024, decreasing 11% on a YoY basis from USD 896 Mn in H1 2023, mainly due to global trends like funding winter and geopolitical issues.
Constant regulatory and compliance-related challenges pose hurdles for fintech startups in India. Fintechs fall under the realm of various governing bodies like SEBI, RBI, IRDAI, and National Payments Corporation of India. This makes it difficult for startups to foray into the fintech industry.
The Indian fintech market is one of the fastest-growing technology segments, driving innovation across various applications, including loans, payments, stock trading, and credit scoring. The various services provided in the fintech sector are regtech, payment/billing, insurtech, money transfer/remittance, mortgage/real estate, and others (lending, capital market, and wealth management.
As per NCPI, over 3,000 fintech startups are registered with the DPIIT in India. However, startups and the Indian government are coming up with dynamic solutions to cope with these issues and ensure the growth and success of the fintech industry across the country.
Market trends:
Neobanks, which are entirely digital financial service providers without physical branches, are gaining prominence in the Indian fintech market. These banks operate exclusively online, offering a range of financial services through digital platforms.
Regtechs help fintechs to stay compliant with regulations and they use cloud technology, ML and big data to identify and prevent threats. Fintechs that leverage regtechs are eventually expected to enjoy significant cost savings.
Market drivers:
The rapid growth of India's middle class has played a significant role in the expansion of the Indian fintech market. With higher disposable income, fintech companies have effectively bridged the gap in the market by offering accessible and innovative financial solutions.
Over the years, India has witnessed a massive digital transformation. The launch of UPI by the NPCI, the government-backed Digital India program, and RBI’s approved fintech sandbox, are the primary reasons behind the evolution. The Digital India initiative had a significant impact on improving the population’s digital maturity.
Key deterrents to the growth of the market:
There has been a significant drop in fund raising in Q2, Q3, and Q4 of 2023 and Q1 of 2024. Raising capital from the right investors is one of the major hindrances that fintech entrepreneurs face. The fintech sector received a total funding of USD 795Mn in H1 2024, decreasing 11% on a YoY basis from USD 896 Mn in H1 2023, mainly due to global trends like funding winter and geopolitical issues.
Constant regulatory and compliance-related challenges pose hurdles for fintech startups in India. Fintechs fall under the realm of various governing bodies like SEBI, RBI, IRDAI, and National Payments Corporation of India. This makes it difficult for startups to foray into the fintech industry.
Table of Contents
67 Pages
- Chapter 1: Executive Summary
- Chapter 2: Socio-Economic Indicators
- Chapter 3: Introduction
- 3.1. Market Definition and Structure
- Chapter 4: Evolution of Fintech in India
- Chapter 5: Global Fintech – An Overview
- 5.1. Global Fintech Market – An Overview
- 5.2. Global Funding in Fintech dips
- Chapter 6: Fintech Market in India ─ An Overview
- 6.1. Fintech Market in India – An Overview
- 6.2. Fintech Clusters in India
- Chapter 7: Fintech Market in India ─ Current Landscape
- 7.1. India’s Fintech Startup Landscape ─ Subsectors
- 7.2. Biggest Fintech Funding Rounds in June 2024
- Chapter 8: Market Influencers
- 8.1. Market Drivers
- 8.2. Market Challenges
- Chapter 9: Growth Opportunities
- 9.1. Growth Opportunities in Fintech Market in India
- Chapter 10: Market Trends
- 10.1. Key Market Trends
- Chapter 11: Government Initiatives
- 10.1. Favourable Government Initiatives
- Chapter 12: Competitive Landscape
- 12.1 One97 Communications Limited
- Company Information
- Business Description
- Products/services
- Key People
- Note: Financial data and segment-wise data is available only for public companies
- 12.2. ET Money
- 12.3. Freecharge
- 12.4. Mswipe
- 12.5. One MobiKwik
- 12.6. Oxyzo
- 12.7. PhonePe
- 12.8. Pine Labs
- 12.9. Policybazaar
- 12.10. Razorpay
- Chapter 13: Major Startups in the Fintech Market
- 13.1. Stable Money
- 13.2. INDmoney
- 13.3. BharatPe
- 13.4. Velocity
- Chapter 14: Recent Developments
- 14.1. Recent Developments
- Chapter 15: Appendix
- 15.1. About Netscribes
- 15.2. Research methodology
- 15.3. Disclaimer
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