What's Driving Growth For India's Fintech? | Startup Street | CNBC TV18

Summary

The Indian fintech ecosystem is set for explosive growth, with revenues projected to reach $190 billion by 2030, potentially increasing to $250 billion. India ranks third globally in fintech companies and unicorns, supported by a national digital strategy and a large underbanked population. The shift from payments to lending technologies is driving this growth, with lending expected to contribute 30% of fintech revenues. The report from BCG's Global Fintech Fest highlights the need for substantial investment in emerging technologies and the potential for a highly interconnected ecosystem, including banks, fintechs, and public digital infrastructure.

Takeaways

• 🌟 Global fintech revenue is projected to grow five-fold by 2030, with India having the third-highest number of fintechs and fintech unicorns.
• 🚀 India has the potential to achieve $190 billion in fintech revenues by 2030, with an additional upside of $60 billion.
• 📈 Lending tech is expected to be a significant driver of growth, with fintechs focusing on this area more than payments.
• 🌐 The fintech ecosystem in India is supported by a national strategy on digital infrastructure, providing a fertile ground for innovation.
• 💡 The underbanked population and the success of digital payments in India are key factors in the fintech growth.
• 🏦 The Banking Technology and Digital (BTD) space is particularly exciting, as it helps banks become more effective.
• 📊 The contribution of fintech to overall banking revenue is expected to rise from 5% to 20% by 2030.
• 🔄 There is an evolving, highly interconnected ecosystem in India, involving multiple layers including banks, fintechs, and public players.
• 💼 India faces a funding gap of $100-120 billion for critical and emerging technologies, requiring substantial public and private investment.
• 🏗️ Investment in fintech is not only about providing solutions but also about developing intellectual property, particularly in AI and blockchain.
• 🔮 The report suggests that India needs to catch up in technology maturity, with an emphasis on software as a service solutions and solid intellectual property.

Q & A

What is the projected growth of global fintech revenue by 2030 according to the BCG study?

The BCG study projects that global fintech revenue will experience a five-fold increase by 2030.

Where does India rank in terms of the number of fintechs and fintech unicorns globally?

India ranks third in terms of the number of fintechs and fintech unicorns globally.

What is the potential revenue India could achieve from fintech by 2030?

India has the potential to achieve $190 billion in revenues from fintech by 2030, with an upside of another $60 billion.

What is the current focus of the fintech ecosystem in India, according to the report presented at the GFF?

The current focus of the fintech ecosystem in India is on lending tech, which is expected to account for about 30% of the revenues of the system by 2030.

What is unique about India's national strategy on digital that fosters fintech innovation?

India's national strategy on digital is unique due to its digital public infrastructure and other measures, which provide a fertile ground for fintech innovation.

What is the significance of the underbanked population in India for fintech growth?

The large underbanked population in India presents a significant opportunity for fintech growth, as it indicates a large market that can be served by fintech solutions.

What is BTD and why is it an exciting area for fintech in India?

BTD stands for Banking Technology and Digitization. It is exciting because it serves banks by helping them become more effective, unlike the rest of the world where the segment is more evolved.

How does the fintech ecosystem in India differ from the rest of the world in terms of revenue contribution from exchange foreign exchange?

In India, the revenue contribution from exchange foreign exchange is expected to increase from 5% to 20% of the overall banking revenue by 2030, indicating a significant growth potential.

What is the current funding gap for critical and emerging technologies in India's fintech sector?

India has a funding gap of 100 to 120 billion dollars that needs to be filled in for critical and emerging technologies in the fintech sector.

What role does the public sector play in the fintech ecosystem in India?

The public sector in India plays a significant role by providing a digital infrastructure that supports fintech innovation and by being a part of the interconnected ecosystem with banks and fintech companies.

How does the report suggest that fintech companies in India should focus on intellectual property and technology?

The report suggests that fintech companies in India should focus on developing solid intellectual property in areas like AI models and software as a service solutions to offer advanced technological solutions.