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Indian fintech boom: $20 billion industry predicted by 2030, study reveals

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The Indian enterprise fintech industry is projected to reach $20 billion by 2030, according to a report by Chiratae Ventures and The Digital Fifth. The report highlights the rapid transformation of the BFSI (banking, financial services and insurance) sector and the move towards 100% digitalization for the retail and MSME segments. Enterprise fintech start-ups are expected to benefit from this growth opportunity. The report focuses on six essential sectors within enterprise fintech: BankingTech, LendingTech, PayTech, RegTech, InsurTech, and WealthTech. Investment in technology across financial segments is expected to see high growth over the coming decade, driven by public infrastructure initiatives such as IndiaStack and Account Aggregator.

The Indian enterprise fintech industry is projected to reach $20 billion by 2030, according to a report titled “Unlocking Indian Enterprise Fintech” by Chiratae Ventures and The Digital Fifth. The report highlights the rapid transformation of the BFSI (banking, financial services and insurance) sector amidst demand for lower costs, scale, innovation, and agility.

The report predicts that banks and financial institutions will move towards 100% digitalization for the retail and MSME segments over the next decade. Major innovations in the Indian BFSI industry have been propelled by regulators and public infrastructure initiatives such as IndiaStack, Account Aggregator, and ONDC.

The growth of the enterprise fintech industry presents a significant opportunity for start-ups operating in sectors such as BankingTech, LendingTech, PayTech, RegTech, InsurTech, and WealthTech. These start-ups play a pivotal role in streamlining product, sales and service delivery, as well as enhancing efficiency within the BFSI segment.

The report also highlights the investment in technology across financial segments, which is expected to witness high growth over the coming decade. The digital innovation in the sector is supported by public infrastructure initiatives such as India Stack, Account Aggregator, ONDC, and KYC and DBU regulations. The Digital Personal Data Protection Act (DPDP) of 2023 is also expected to push financial institutions and their partners to reorient their architecture and business for better data governance.

Large banks have already started investing heavily in technology and scaling their digital business, a trend that is being replicated by small and mid-sized banks. Fintechs and Embedded Finance players are driving customer engagement through partnerships with banks, and this digital push is gradually expanding to complex business banking, including trade finance and treasury.

Regulatory frameworks around digital lending are evolving and positively influencing technology spend by lenders, who are experimenting with innovations such as pre-approved loans, B2B BNPL, supply chain finance, and secured credit, among others.

“The last decade witnessed a continuous influx of funds into enterprise fintechs. This, coupled with the entry of new-age players in various Enterprise segments, is shedding light on the previously untapped potential of this market,” said Sameer Singh Jaini, Co-Founder and CEO of The Digital Fifth, a fintech and digital finance consulting & advisory firm.

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