The Indian fintech sector is still resilient, with its revenues projected to reach $190 billion by 2030, comprising more than 20 percent of all banking revenues, a new report said. Driven by the increasing growth trajectory, the Indian fintech sector grew 50 percent by revenue in 2023, the growth trajectory that is expected to continue, said a report by Boston Consulting Group.
It is, according to the report, assessing how critical and emerging technologies like Generative AI to API-based open architecture are leveraged across functions from customer service automation to fraud detection," shared during GFF. Strong fintech ecosystem of the country that is based on digital public infrastructure 1.0 comprising Aadhaar and UPI. In the words of Yashraj Erande, Global Head of Fintech and India Head of Financial Institutions at BCG, "It is creditable that Indian fintechs have achieved 50% growth rate in 2023 against the global average of 13%. It is also encouraging that Indian fintechs demonstrate a path to profitability much earlier than what was expected 2-3 years ago."
It also said that there is an opening to enhance the global financial services structure, particularly in India. Around $1 billion investments will be needed for Indian financial services players' modernization over the next five years.
Erande added, "We are also confident that the next wave of growth will be powered by DPI 2.0-ONDC and National Health Stack, etc.-and AI-driven DPI 3.0."
Global fintech funding has consolidated now, ranging from $7-10 billion quarter over quarter for the last four quarters. The sector is pegged to reach $1.5 trillion revenues by 2030, with investments led by APAC and NAMR.
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