Fintech India has been on a growth trajectory for the last decade. The sector has witnessed a remarkable transformation in the last few years, thanks to the digital revolution and supportive government policies. Fintech has not only disrupted traditional banking and financial services but also provided access to financial services to millions of underserved and unbanked individuals in the country.
In this blog post, we will discuss growth and future of fintech in India and trends to watch out for in 2023.
Growth of Fintech in India
The growth of fintech in India can be attributed to several factors, including the increasing adoption of digital payments, rising smartphone penetration, and supportive government policies. Digital India has fueled fintech growth by providing digital infrastructure and services to all citizens. Additionally, the government’s focus on financial inclusion and cashless economy has boosted fintech growth.
One of the key drivers of fintech growth in India has been digital payments. India has seen a major shift to digital payments due to demonetization in 2016 and the COVID-19 pandemic in 2020.
Future of Fintech in India
The future of fintech in India looks promising, with several trends expected to shape the industry in the coming years. Here are some of the key trends to watch out for in 2023:
1- Digital Lending
Digital lending is expected to be a significant growth area for fintech in India. With the increasing adoption of digital payments and the rise of alternative credit scoring models, digital lenders are well-positioned to serve the underserved and unbanked segments of the population.
2- Open Banking
Open banking is an emerging trend in the fintech industry, where banks and other financial institutions open up their APIs (Application Programming Interfaces) to third-party developers. RBI guidelines for open banking in India are in place and banks have started sharing their APIs with fintech firms.
3- AI and Machine Learning
Artificial Intelligence (AI) and Machine Learning (ML) are expected to play significant role in the future of fintech in India. Fintech can use tech for personalization, fraud detection, and automation to save costs and boost efficiency.
Blockchain can transform fintech with secure, transparent, cost-effective, and efficient transactions. In India, blockchain is already being used in several areas, including supply chain management, identity verification, and digital payments. With the increasing adoption of blockchain, fintech companies are expected to develop new products and services that leverage this technology.
5- Financial Inclusion
Financial inclusion is a key focus area for the Indian government, and fintech companies are expected to play a significant role in achieving this goal. Fintechs use tech to reach unbanked, offering digital payments, loans, and insurance. Fintech firms can tap into rural India’s vast untapped market due to the widespread availability of smartphones and the internet.
In conclusion, India’s fintech industry has boomed in recent years and will likely continue to expand in 2023 and the future. Digital payments, mobile tech adoption, and govt. financial inclusion initiatives boosted fintech growth in India. Overall, India’s fintech future is promising and its evolution will transform the country’s financial landscape. With the rise of digital transformation, the financial technology industry is rapidly expanding and disrupting traditional financial services. To gain a comprehensive understanding of this field, one should consider pursuing the Post Graduate Diploma in Financial Technology offered by BSE Institute Ltd.
This program provides a holistic view of fintech, covering topics such as blockchain, digital payments, robo-advisory, and cybersecurity, among others. The program prepares students to be fintech industry professional
Pursuing the Post Graduate Diploma in Financial Technology from BSE Institute Ltd will not only enable individuals to stay ahead of the curve in the rapidly evolving fintech industry but also provide them with a competitive edge in the job market. Join our fintech training program to boost your skills and knowledge, and make a mark in the industry.”