Being the third-largest market size of Fintech, this year India stands at $31 billion. Let’s get into the segments, possibilities for the growth of fintech companies in India.
Considering the worldwide position of the fintech companies existing in one of the most powerful economies of the world, such as the US and China, India strongly holds on to the third-largest fintech market size. Moving ahead, the market size of India is expected to face decent growth as the economic conditions are improving and promising as well.
Due to the introduction of digitalization, the fintech market size of India is expected to lead the ladder soon in the global market, if the conditions remain favourable and the fintech companies remain strong on innovation and quality of services. In the next five years, fintech companies in India are expected to grow at a compound rate of 24.5%. This estimation is an outcome from the constant enhancement of fitch companies and increasing dependency on digitalization and software development. As more and more businesses are relying on the services and competency of the fintech companies, hence, the demand and supply side seems to find its growth graph.
Being among one of the fastest-growing economies, India seems to lead the game further. With paperless lending, mobile banking, secure payment gateways, and other online banking methods offer a promising future for fintech companies.
Fintech adoption in India is unprecedented and hence, faces multiple challenges due
Here are the key issues and challenges for the fintech companies:
Though the country is diversified and populated, still a huge portion of India remains underbanked, and yet to comply with the constantly changing regulatory environment. These are the reasons, to overcome the financial challenges is not easy. This is where Fintech companies enter and with its ability to transform the financial and banking sector of the country.
Due to factors like an innovation-driven startup, a favorable market, penetration of smartphones, the young population, and government-led attempts to promote the industry, there is a huge scope for FinTech companies to grow. More importantly, with increasing awareness of financial technology also gives the FinTech industry of India a strong boost.
With the growing FinTech companies, partnerships with traditional banking, insurance, and retail sectors, where the customer needs are evolving and so are the solutions. Hence, there is no doubt that there is a blocker in the acceleration of FinTech companies. From all the above factors, it clearly indicates that there is huge potential of growth in the FinTech sector as the country is gearing up towards massive adoption.