India is amongst the fastest growing fintech markets in the world according to a new report from RBSA Advisors. The recently released study details the fintech industry in India, and examines the future of financial services in the region.
According to the research, India has attracted a nearly $647 million investment across 33 fintech deals during the quarter ending June 2020, with investment activities in China only reaching $285 million during the same period. These activities have aided the country to become one of the largest fintech markets in the world.
India has also seen extreme growth in new ventures launched in the fintech space, as between 2010 and 2015 there were 1216 new fintech startups founding according to the MEDICI India Fintech Report. The more recent period of 2015 to June 2020 has also seen significant growth, with multiple start-ups commencing operations in payments, lending and wealth to name just a few. As of June 2020, India has around 2174 fintech startups.
The RBSA report also found that over the last 4.5 years, total investment in India’s fintech sector crossed $10 billion. During the Covid-19 pandemic, India has seen a 60% increase in fintech investments, attracting $1.46 billion in the first half of 2020 in comparison to $919 million for the same period in 2019.
The government and the countries regulators are the main catalysts for the growth of the fintech sector in India, with leaders in the space expecting the market value to expand significantly over the next year. Over the past few years, India has essayed several guidelines and reforms such as granting multiple licenses for differentiated banking to small finance banks, payment banks and introduced the unified payment interface to include the unbanked population of India in the formal financial services folder, strengthening the major fintech segments such as payments and lending ecosystem
Analysts in the report wrote: “Fintech has been known for their coming of age technology owning towards offering the most convenient and flexible options for consumers. It is not surprising that going forward, financial services will offer a customised and local offering to their customers using data analytics. The more and more advances in technology financial services adapt to upgrade their strategies, more growth in this sector is foreseen. This is just the beginning of a huge fintech market in the upcoming decade.”