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TLDR:
- 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 BFSI industry is undergoing rapid transformation, with a focus on lower costs, scale, innovation, and agility.
- Instead of viewing technology as a cost center, banks are now seeing it as a driver to manage profit and loss and reduce the cost-to-income ratio.
- Investment in technology across financial segments is expected to see high growth over the next decade.
- Regulatory frameworks around digital lending are evolving and positively influencing technology spend by lenders.
The Indian Enterprise FinTech industry is projected to reach $20 billion by 2030, according to a report titled ‘Unlocking Indian Enterprise Fintech Market’ by Chiratae Ventures and The Digital Fifth. The report highlights the rapid transformation of the BFSI industry and the demand for lower costs, scale, innovation, and agility. Banks are shifting their mindset from viewing technology as a cost center to seeing it as a driver to manage profit and loss as well as reduce the cost-to-income ratio.
Investment in technology across financial segments is expected to experience significant growth over the coming decade. The report attributes this growth to the revolutionary public infrastructure in India, including India Stack, Account Aggregator, ONDC, KYC, and DBU regulations. The Digital Personal Data Protection Act (DPDP) of 2023 is also expected to drive better data governance and prompt financial institutions and their partners to reorient their architecture and businesses.
According to Sudhir Sethi, the founder and Chairman of Chiratae Ventures, the Enterprise FinTech industry in India presents an opportunity of over $20 billion by 2030. FinTechs and embedded finance players are driving customer engagement in partnership with banks. This digital push is gradually expanding to more complex business banking areas, including trade finance and treasury.
The regulatory frameworks surrounding digital lending are continuously evolving and positively influencing the technology spend by lenders. These frameworks are likely to foster the growth and development of the Enterprise FinTech industry in India.
