Growth of Fintech in India 2022 Updated

Growth of Fintech in India 2022 Updated

In the past few years, we have seen the growth of fintech in India, with a number of prosperous businesses establishing their footprint on an Asian and global scale. As FinTech enters its adolescent stage, it is becoming more self-assured and seeks praise from both its peers and the general public. With customer data and the larger ecosystem in mind, fintech companies are attempting to apply international best practises to the Indian setting.

The ecosystem consists of FinTech firms and start-ups, banks and financial institutions, consumers, and regulators. These are the five main components of the Indian FinTech possibility. This article focuses on leveraging the growing Fintech potential in India. 

Growth of FinTech in India with its strong Ecosystem

Growth of FinTech in India with its strong Ecosystem

It is fair to claim that India is a “mobile first country”, if not a mobile only one, since it rapidly adopts data and devices like smartphones, which have reached the 350 million mark. The use of social media, demographic dividend, and increasing urbanization have resulted in a sizable group of “digital natives,” who will continue to promote the expansion of innovative business models.

We are expected to see an increase in consumer acceptance of digital media as the government continues its drive towards a cashless economy with initiatives like incentives for digital transactions, government payment and taxes through online mode etc. This has led to a change in customer behavior coupled with an increase in e-commerce transactions. FinTech is also being promoted by governments and startup accelerators through financial and physical support.

Growing trends of Companies with the Rise of Fintech in India

With the rise of FinTech in India, most startups or companies are getting an opportunity to work in FinTech sector. It may be business-to-business (B2B), where one partners with or provides services to institutional clients, such as transaction authentication, payment processing, analytics, and security solutions, or it may be customer-facing, such as loans, wallets, investments, etc. Depending on the market, company model, and underlying technology, fintechs can improve.

We are a data-rich nation today because of the abundance of data from credit, online transactions, social media access, spending, and financial aggregators, and businesses specialising in data science and analytics may take advantage of this across business models. Such information can serve as the seed money for the development of business models for solutions in the lending, insurance, payments, and investment sectors. We will see more cutting-edge FinTech solutions as records for vehicles, health, real estate, and other things become digital.

With cloud-based storage, plug-and-play offices, and affordable access to technology, the cost of launching a firm has decreased significantly, which is contributing to the expansion of the fintech industry. Identity and fraud management, advanced analytics, blockchain, the Internet of Things (IoT), augmented and virtual reality, and AI and NLP all offer consumers and businesses alike an unfathomable range of goods, services, and experiences. 

The experience for end users will be redefined with the introduction of customer-centered design and experience. Building a mobile-first Android experience is quick, affordable, and simple for many start-ups because close to 90% of smartphone consumers use Android.

Relationship between Financial Institutions & Banks

The relationship between FinTechs and banks and how the development of FinTech would affect BFSI has been the subject of extensive discussion. FinTechs have been successful in resolving highlighted issues because of their special strengths in concentrated products, solutions, and segment depth.

FinTechs are nimble, highly adaptable, and have the capacity to change course or persevere in the face of challenges. In addition, the FinTech sector lacks regulatory control, a distribution footprint, client access, and trust. For banks and financial institutions (BESI) to collaborate with FinTechs and vice versa, this creates the ideal synergy. Many banks, including Kotak, have established innovation labs and are working with different FinTechs to create and launch products.

Many banks are opening up their APIs to integrate with FinTechs as they transition to API banking. In addition, banks are collaborating with FinTechs in the fields of insurance, robo-advisory, customer experience, and interactive solutions like chatbots.

At the same time, banks are able to roll out products more quickly, and at the same time, this gives FinTechs more opportunities for income and growth. Many banks and financial institutions are open to making strategic investments in these FinTech startups and are also seeking partnerships. This bodes well for the expansion of both businesses and adds value in different ways.

Scope of Fintech for Consumers

It is increasingly important to remember that nobody owns the customer as everyone competes for their money and their attention. As more options are available to them, consumers are getting more and more picky. There are many possibilities in every area, whether it is aggregators providing a variety of financial goods on a specific platform or chatbots doing errands.

Because of this, whether customers connect with digital networks on the web, mobile devices, or social media, they have grown to demand ease, user experience, and offers/deals. Consequently, it is a terrific moment to be a consumer. Data is unquestionably the new money, and consumer interaction on digital platforms enables FinTech & other ecosystem participants to become data rich. This data enables the creation of new products that can be tailored for individual consumers.

Innovational Approach for Regulators

The bulk of FinTechs work in an unregulated environment, despite the fact that regulators are in favour of development as long as client privacy & risk are not violated. They will fall under regulatory jurisdiction when they become more customer-facing, whether in terms of transactions or goods, such as insurance, account aggregation, investment, loans, payments, or deposits. 

Therefore, it is crucial that FinTechs have a deeper understanding of India’s regulatory environment. Some models that could be successful elsewhere on the globe should not be mindlessly applied here. Regulators can be regularly engaged in engagement, ideation, and conversation to enhance understanding on both sides and lessen roadblocks.


Overall, the future seems bright for Indian FinTech startups, providing they carefully select their target markets, issues to tackle, business models, and unit economics. It’s crucial to remember that technology may level the playing field and is simple to replicate. Success will go to those that successfully integrate technology with consumer data, ecosystem connections, and speed to market.


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