India’s Fintech Story Is Sprinting, But Not Immune From Challenges

In India, fintech is revolutionising finance and increasing financial inclusion. As the industry matures, it will become more accessible, inventive and inclusive. 

India is one of the world’s fastest-growing fintech markets. According to the Department for Promotion of Industry and Internal Trade (DPIIT), India has over 2,000 fintech start-ups. With this figure rapidly increasing, India’s digital payments business has reached a tipping point and is predicted to more than quadruple from USD 3 trillion today to USD 10 trillion by 2026. As a result of this extraordinary rise, non-cash digital payments will account for roughly 65 per cent of all payments by 2026. 

 However, this is not immune from challenges and it would need to course correction with time. Regional VP at Slack, Rohan Pagey said that challenges like lowering customer acquisition costs, as well as cost to serve will be critical to fintech growth as they compete against traditional players with large customer bases.  

Pagey counts other obstacles in the success of Slack as the rapid prototyping and iterating across all digital touchpoints, it will ensure the feedback loop which is the key to creating insightful customer experiences and building the digital-natives advantages for fintech. 

The ability of fintech to abide by and react to changes in regulation especially in a global environment, will affect the speed and extent of fintech growth and disruption, he added. 

When the future is fintech, India is witnessing a global paradigm for open banking deployments and rapid adoption of emerging technologies. The joint efforts of financial institutions, startups, the government, venture investors and regulators have created a climate conducive to fintech innovation and expansion.