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    Fintech Industry in India:Future of Financial Services: Report Summary Iv

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    HEMANG PAREEK
    The report provides an overview of the FinTech industry in India, including its origins and growth sectors. Key sectors include lending, wealthtech, payments, and insurtech. Digital payments saw the largest growth, aided by initiatives like UPI and Fastag. While challenges remain around regulation and security, the Indian FinTech industry is expected to continue strong annual growth of 22.7% due to supportive measures from regulators like RBI, SEBI, and IRDAI.

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    Fintech Industry in India:Future of Financial Services: Report Summary Iv

    Uploaded by

    HEMANG PAREEK
    33 views2 pages
    The report provides an overview of the FinTech industry in India, including its origins and growth sectors. Key sectors include lending, wealthtech, payments, and insurtech. Digital payments saw the largest growth, aided by initiatives like UPI and Fastag. While challenges remain around regulation and security, the Indian FinTech industry is expected to continue strong annual growth of 22.7% due to supportive measures from regulators like RBI, SEBI, and IRDAI.

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    Report Summary IV

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    The report provides an overview of the FinTech industry in India, including its origins and growth sectors. Key sectors include lending, wealthtech, payments, and insurtech. Digital payments saw the largest growth, aided by initiatives like UPI and Fastag. While challenges remain around regulation and security, the Indian FinTech industry is expected to continue strong annual growth of 22.7% due to supportive measures from regulators like RBI, SEBI, and IRDAI.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views2 pages

    Fintech Industry in India:Future of Financial Services: Report Summary Iv

    Uploaded by

    HEMANG PAREEK
    The report provides an overview of the FinTech industry in India, including its origins and growth sectors. Key sectors include lending, wealthtech, payments, and insurtech. Digital payments saw the largest growth, aided by initiatives like UPI and Fastag. While challenges remain around regulation and security, the Indian FinTech industry is expected to continue strong annual growth of 22.7% due to supportive measures from regulators like RBI, SEBI, and IRDAI.

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    Report Summary IV

    FinTech Industry in India:Future of Financial Services

    Published in February 2021, the report gives a good qualitative and quantitative overall picture about
    origin and growth of Fintechs, different sectors in which they are rendering services, measures taken by
    the Indian government to facilitate their growth and the challenges faced by Fintechs. The report also
    provides a small yet much needed insight over the impact of covid on FinTech industry in India.

    FinTech refers to any technology which can take the form of a product,software or service which aims to
    provide financial services in a new and better way. The sector started to gain momentum in the 1990s and
    registered rapid growth after the global financial crisis of 2008. In India, it has grown faster post
    demonetization which rendered more than 80% of money useless thereby forcing the public to switch to
    digital services. Some of the services used by FIntechs are AI and ML( in stock markets, InsureTech)
    BigData (to manage large datasets and to understand the spending habits of consumers), BlockChain
    and Robotics.

    India is among the fastest growing markets for Fintechs the success of which is mainly attributed to the
    introduction of Aadhar, scalable platforms like UPI, making bank accounts under PMJDY. They are mainly
    categorised under Lending, RegTech, WealthTech, Payments and InsurTech services. The lending
    services either operate as Retail Lending or Merchant lending and companies can either play the role of
    P2P platforms or aggregators. The digital lending segment if focussing more on the underfunded
    companies, MSMEs enjoying 100%FDI, the same goes for P2P lending platforms. Recoverability still
    remains an important concern for the lending sector.
    WealthTech mainly includes the investment advisor/brokerage platforms. The sector has been growing
    uniformly but is predicted to achieve fast growth from 2021 to 2025. SEBI has undertaken reforms in
    Sandboxes and selling of Mutual funds to foster growth of this sector.
    The InsurTech sector hasn't made any significant impact in the Indian market because of lower interest
    among the public towards insurance schemes. However this sector is also hopeful of registering growth in
    post-covid world.
    Digital Payments has seen the largest growth among FinTechs in India. Prepaid payment instruments,
    mobile payments,payment gateways, payment banks have not only registered their individual growth but
    also acted as a tool for growth of the overall economy during the post-demonetization era and during the
    pandemic. Regulated by RBI, aggregators should have networth of 15 crore while registering and
    payments bank to have 100 crore net worth. Majority of Payments app are now expanding e=their
    services like bills, malls and brokerage etc. Government initiatives like UPI and FasTag are aiding them in
    their growth.
    Major factors affecting the FinTech environment are accessibility to early funding, technology like
    smartphones, internet, online KYC, digital signatures etc, accessibility of banking services and adoption of
    technology by banks. Major concerns/ challenges of FinTechs revolve around the uncertainty of regulating
    authorities, increasing competition, data breach/data security risks and finally lack of willingness of
    consumers to adapt to changes.
    Covod-19 did not have a uniform impact on all sectors of FIntech services. Companies which were able to
    secure decent funding had registered great growth and vice versa. The customer demand has shifted
    hugely to non conventional banking services and industries of which digital payment services have
    benefitted the most, followed by digital investment services.
    The Indian FinTech industry is expected to grow at an average of 22.7 percent annually because of the
    positive approach of RBI, SEBI and IRDAI towards the sector. SEBI has recently eased regulations
    regarding registration of mutual funds, public listing of Startups and RBI is also set to bring reforms in
    regulatory sandbox practices.

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