India’s total FinTech software and services market is expected to grow about $13 billion.
The biggest goal for Narendra Modi government is to make good use of financial technology, says Amitabh Kant, NITI Aayog CEO. The Modi government, which will soon be stepping into its second term, aims to achieve greater financial and insurance inclusion for lifting people who are below the poverty line, he added. The Fintech market, which is poised to touch $31 billion in 2020, is one of the fastest growing Fintech markets, globally. The sector has garnered about $4 billion in investments since 2014. Amitabh Kant was speaking at an ASSOCHAM Conference in New Delhi on Thursday.
According to industry reports, India’s total FinTech software and services market is expected to grow about $13 billion. Out of this, the software market will amount to $2.4 billion by 2020. The Fintech industry is growing at a rate of 22% CAGR. Digital Payment is the predominant theme of India’s FinTech growth. The same is expected to touch $1 trillion by 2023. In fact, about $1 trillion will be digitally disbursed by 2029, Amitabh Kant said.
The government has played an active role in enabling Fintech as it has disrupted payments. IndiaStack, a platform for governments, businesses, startups and developers to resolve India’s problems, has boosted the growth of Fintech startups. Also, the collaboration of government with the industry has also built Unified Payments Interface (UPI), which is the world’s most advanced payment system, NITI Aayog CEO said.
The UPI reached $1 billion in less than 8 months of its inception. UPI is not just used for the BHIM. Private players such as Paytm, GPay, Mobiwkik, PhonePe and Whatsapp also leverage the UPI tech.
Fintech for India
Keeping in mind the unique needs of India, Fintech can be used to meet them. This includes financial inclusion, access to credit, limited insurance reach etc. Fintech can also be used as a solution provider for the global financial sector.