India’s Leading BFSI and FinTech Companies 2023

72 | India’s Leading BFSI and FinTech Companies 2023 [ INDIAN FINTECH COMPANIES OVERVIEW ] While the FinTech is reshaping the BFSI sector through various disruptive services, the other range of areas in the FinTech landscape that BFSI sector are looking at: S t r e n g t h e n i n g c o n s ume r facing solutions: FinTech offer per sona l i zed produc t s and services, convenience and speed, agi le and s imple paper less operations Risk evaluation: FinTech use big data and analytics to forecast cl ient behavior and generate sophisticated risk evaluation. This can help in making better j u d g eme n t s a n d p r o v i d e more personal ized customer experiences. Also, with the help of big data analytics, FinTech can integrate data from a variety of sources for improved risk assessment. Fraud detection: Big-data analytics can be used to develop accurate f raud detect ion sys tems by detecting any odd transactions Robotic process automation: Allows bots to undertake repetitive and labour-intensive tasks without the need for human interaction. GROWTH DRIVERS A combinat ion of factors i s expected to play the growth driver for the Indian FinTech sector. The major growth drivers include: Rising per capita income: India is third largest economy based on PPP terms Growth in jobs: There is an increase in formal jobs as reflected by the rise in EPFO accounts on payrolls to 12.2 million in FY22 Improv i ng f i nanc i a l i zat ion: The increasing share of Indian population with bank account to over 75% as of Mar’22 Mobile connectivity: Smartphone users in excess of 900 million together with increase in internet penetration Benign funding: Approx. 29 billion USD invested by venture capitalists between 2017-mid-2022 All these are encouraging plus factors for the burgeoning Indian FinTech industry. Already enough signs are there to indicate that FinTech firms play an increasingly greater role in financial inclusion. Lending FinTechs appear to have over 35% share of the new-to- credit customers. PayTechs have garnered over 90% share of the UPI transaction value. TRENDS Wi t h t he wo r l d mov i ng increasingly towards digital economy, the government is tightening its watch and stepping regulations to user data privacy Technology-enabled agility keeps FinTech firms ideally positioned to become efficient channel partners for banks and other financial institutions. This opens huge opportunities for FinTech firms. G o v e r n m e n t f o c u s o n promoting digital commerce through Open Network for Digital Commerce (ONDC). This is an initiative aiming at promot ing open networks for all aspects of exchange of goods and services over digital or electronic networks. ONDC is to based on open- sourced methodology, using open specifications and open network protocols independent of any specific platform. This could prove a big booster for digital payments and further the cause of FinTech firms. Dun & Bradstreet