The landscape of FinTech sector in India is undergoing a remarkable transformation. In this State of the Economy podcast, Sanjay Doshi, Partner at KPMG Deal Advisory, and Pranav Pai, Founding Partner, and CIO, 3one4 Capital talks to businessline’s Jyoti Banthia on the growth of FinTech in India.

The FinTech ecosystem in India can be broadly categorised into three segments. The initial phase of FinTech was primarily driven by payments, with innovative companies pioneering digital payment solutions. Subsequently, FinTechs expanded their horizons to lending, wealth management, and insurance, either as distributors or product manufacturers. The third segment involves FinTechs acting as enablers and service providers for established financial institutions such as banks and NBFCs.

Investment has been a vital factor fueling the growth of FinTech in India. Over the years, the sector has attracted substantial investments, with over $25.8 billion poured into FinTech ventures since 2014. While the pace of investments may have tempered in recent times, this is seen as a temporary phase, with investors recalibrating their strategies.

Furthermore, the regulatory landscape has been crucial in shaping the trajectory of FinTech in India. The Reserve Bank of India has introduced guidelines to ensure the responsible growth of the sector. These regulations have aimed to strike a balance between encouraging innovation and safeguarding the interests of consumers and the financial system.

One notable development is the concept of Self-Regulatory Organisation. SROs could provide a collaborative platform for FinTech companies to collectively address challenges and establish industry standards, fostering a more mature and accountable ecosystem.

The FinTech sector in India is poised for sustained growth, driven by innovation, investments, and a collaborative approach to regulation. It continues to be a beacon of opportunity for both startups and established financial institutions, promising a future where technology revolutionizes financial services for the benefit of all stakeholders.

Listen to the podcast!

(Host: Jyoti Bantia; Producers: Anjana PV, Nabodita Ganguly)


About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups