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Investment Opportunities in BFSI

India has the highest FinTech adoption rate globally of 87% which is significantly higher than the global average rate of 64%.
2nd highest funded sector (after E-commerce)
3rd largest FinTech ecosystem globally
A global FinTech Superpower
Digital payments value of $65 bn in 2019 is expected to grow at a CAGR of 20% till 2023.

The overall transaction value in the Indian FinTech market is estimated to jump from approximately $65 bn in 2019 to $140 bn in 2023. India has overtaken China as Asia’s top FinTech funding target market with investments of around $286 mn across 29 deals, as compared to China’s $192.1 mn across 29 deals in Q1 2019.

Key growth drivers include:

Widespread identity formalization : 1.2 bn enrolments
High level of banking penetration: 1+ bn bank accounts
High smartphone penetration: 1.2 bn mobile subscribers
India Stack: Set of APIs for businesses and startups
Growing disposable income
Key government initiatives such as UPI and Digital India
Wide middle-class expansion: By 2030, India will add 140 mn middle-income and 21 mn high-income households which will drive the demand and growth on the Indian FinTech space.

Key segments within the FinTech space include Digital Payments, Digital Lending, BankTech, InsurTech and WealthTech.

 

RECENT ANNOUNCEMENTS

 

Aug 31, 2020

FPIs remain positive on Indian markets and invested INR 47,334 crore in August so far

Aug 19, 2020

National Payments Corporation of India (NPCI) has launched an international arm, NPCI International Payments (NIPL), with the aim of exporting its indigenously developed digital payment offerings. The primary aim of NIPL will be to take products like RuPay and UPI global.

Jul 30, 2020

NPCI, India’s retail payments body has tied up withAPIX, world’s first cross-border, open-architecture API platform to scale-up digital payments systems and support global growth of FinTechs.

Jun 05, 2020

Reserve Bank of India set up a Payment Infrastructure Development Fund (PIDF) of INR 500 crore to promote digital payments across India. This will encourage deployment of point of sale (PoS) infrastructure. RBI has contributed INR 250 crore and remaining contribution will be from card-issuing banks and card networks operating in the country.

 

INDUSTRY TRENDS

Digital payments: The market is expected to reach $ 1 tn by 2023

Cashless India: Unified Payments Interface (UPI) – 3.7 bn transactions worth INR 4.7 tn happened in 2018

WealthTech: 440+ WealTech startups in India across personal finance management, digital brokerage, financial research, robo advisors etc.

 

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