Debashis Banerjee is the Director of Marketing and Alliances at HAPPY, a Neo Fintech Platform. Debashis Banerjee is a Marketing and Business Development specialist with over 20 years of experience in industries such as Fintech, Retail, E-commerce, Wellness, and FMCG. He began his career as a Management Trainee with Emami Ltd and has since worked in a variety of sectors and roles. He has held senior marketing positions with well-known companies such as Reliance Digital, Neogrowth Credit, MyGlamm, VLCC International, and Smaaash Entertainment, and has experience in both B2C and B2B marketing.
Debashis has a mix of corporate and agency experience, with his most recent stint as an entrepreneur, running Dexxtra - a Marketing Agency specializing in Digital & Performance Marketing, partnering with a number of NBFCs in Lead Generation & Customer Acquisition.
There is no denying that India's fintech sector has grown at an incredible rate in recent years and is on an upward trend. The Indian fintech industry will increase by more than $150 billion by 2025, according to Niti Aayog. The extensive usage of the internet and cellphones has benefited the country's fintech sector's expansion and spread. Indeed, from banking and insurance to digital transactions and wealth management, fintech companies are disrupting traditional financial services by leveraging cutting-edge technologies such as artificial intelligence, cloud computing, and machine learning.
Financial services are vital in any modern economy, including India. Fintech has provided financial services to millions of underprivileged people across the country. Fintech has acquired great popularity in India, particularly with advances in digitization. Furthermore, as a result of several empowering measures undertaken by the government and large authorities, finTech has had a massive impact on the global financial services sector and is rapidly evolving.
Current Scenario of the Fintech Industry
Fin has recently emerged as a critical component of the Indian financial system. Customers have fully embraced digitalization in their daily lives, as evidenced by digital payment, investing technology, online-only insurance, and other methods. In reality, digital usage has spread beyond consumers and into businesses. As a result of the growth of this payment ecosystem enabled by technology and advances, a variety of safe, secure, cutting-edge, and effective payment methods are now widely available. Digital lending has developed dramatically as a result of the Indian market's endurance and adaptability, as well as customers' awareness and adoption of cutting-edge technologies. More than $9 billion has been invested in digital lending over the last five years, and one EY estimate projects that the business will be worth $515 billion by 2030. Aside from that, 2022 saw a surge in cross-border trade, which helped local payment methods gain appeal and reputation outside of the country.
Given fintech's significance in India in fiscal year 2022, it is expected to grow greatly in fiscal years 2023 and beyond. According to the National Investment Promotion and Facilitation Agency (NIPFA), India has the greatest rate of fintech adoption in the world, at 87%, far higher than the global average of 64%. Given the circumstances, it is not surprise that many global fintech firms are aiming to establish headquarters in India as a result of the expansion and, as a result, are expected to grow and expand in the future.
The Path Towards Advancement
Fintech, which was a key component of the financial ecosystem in 2022, is expected to grow dramatically in 2023. And, as we move forward to increase growth traction, banks will be more innovative and collaborative. Banking as a service (BaaS) has emerged as a significant component in the financial industry in this setting. As a result, we will be able to easily move bank accounts in the near future. In addition, the number of innovative banking systems has steadily expanded in recent years.
An EY report predicts that investment in Indian neobanks would reach $215 billion by 2023. Neo-banks' personalized financial solutions are valued equally by India's young working population as traditional banks. More banks and consumers will explore collaborating with neo-banks as time goes on.
The Indian fintech industry is rapidly increasing, owing mostly to the increased usage of digital payments and financial services. The Indian fintech sector, according to NASSCOM, would be valued at USD 150-160 billion by 2025, with a CAGR of 22%. The COVID-19 pandemic has also accelerated India's migration to digital payments and financial services, resulting in increased use of fintech solutions. The regulatory environment for fintech in India has also grown, with initiatives such as the Reserve Bank of India's regulatory sandbox and the National Payments Corporation of India's Unified Payments Interface (UPI) encouraging industry innovation. However, the sector faces several challenges, including growing competition, regulatory uncertainty, and the need for continual innovation to continue growth.
Considering Every Aspect!
Consumers have profited in inconceivable ways as a result of technical improvements. Fintech, in particular, has simplified the process of making payments and obtaining loans. With increased digital use and government efforts to promote digital payments, the sector has plenty of opportunities for innovation and growth. Fintech companies in India are expected to focus on expanding their offerings, improving the user experience, and using emerging technologies such as artificial intelligence, machine learning, blockchain, and so on to bring new products and services to consumers. As a result, it is reasonable to anticipate that fintech developments will be at the vanguard of propelling the sector forward.
