India’s Leading BFSI Companies 2020
I The Banking, Financial Services and Insurance (“BFSI”) sector holds centre-stage with its ability to connect a wide section of society with the productive sectors of the economy. In recognition of the important role played by the sector, Dun & Bradstreet India is pleased to present the 12th edition of one of our premier publications, ‘India’s Leading BFSI Companies’. In addition, this year we have chosen to use the theme of Technology Disruptions: Spearheading Financial Inclusion for Inclusive Growth as an area of specific emphasis. The 2020 edition of the ‘India’s Leading BFSI Companies’ publication profiles the leading companies from the Indian BFSI sector and captures the pulse of the sector through detailed analysis and perspectives of industry experts. Over the last few years, India has made significant strides towards financial inclusion. Almost a decade ago, only 35% of Indian adults had a bank account. Today, that number stands at more than 80%. This has been driven by a series of measures taken by the government to improve financial inclusion – AADHAAR and Jan Dhan Yojana, to name a few. However, these initiatives have just laid the foundations of financial inclusion and more needs to be done to achieve a meaningful financial inclusion. Of this 80%, only 41% have an active account i.e. made a deposit or withdrawal at least once in a year. With low levels of income, no collateral and no credit history, a vast majority of the population is struck in a low-level equilibrium trap. Improving financial literacy and extending the reach of micro credit can help them in escaping this trap. This is where Fintech comes in. The cost incurred, and time spent on acquiring new customers and servicing existing customers makes it unprofitable for traditional financial institutions to cater to low ticket size customers. This gap is gradually being plugged by Fintech. With the ability to innovate and provide customised financial products, Fintech is rapidly changing the core financial services areas. It has reduced the cost and time for providing financial services manifold and made it possible to reach out to individuals and firms that otherwise did not enjoy access to credit or financial services. The disruption created by these new economy firms is felt across every segment of the BFSI sector. India has developed a strong tech ecosystem that can support innovations offering new value propositions. The time for incumbents to partner with Fintech firms is ripe. Fintech has the potential to accelerate growth through new market opportunities, transforming businesses, productivity gains, providing access to financial products for all, broadening participation of different sections of the society, creating a shared economy and higher multiplier effect on jobs. We have studied the GDP elasticity with respect to Fintech development and found an important conclusion. If India successfully adopts Fintech, we will be able to create GDP over the next 20 years equivalent to the amount we have generated since independence. I hope you will enjoy reading this publication and look forward to receiving your valuable feedback and suggestions. Dr. Arun Singh Chief Economist Dun & Bradstreet India Preface Dun & Bradstreet
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