The economic slowdown could not stop this juggernaut. Nor the pandemic, the lockdown and its pains. India’s fintech industry is on a roll and set to triple in value in the next four years, according to a report released Saturday afternoon by industry chamber FICCI.
And the next step? Going global.
“Replicating core proposition across geographies by adapting offering to the overseas user and regulatory needs” should be the next strategic play for Indian fintech to attain sustainable success, forecasts the report authored by the Boston Consultancy Group (BCG) for FICCI, titled 'India Fintech: A $100 billion opportunity'.
“India will see the emergence of ecosystem orchestrators and multinational fintechs as it evolves into a global fintech powerhouse,” predicts Ruchin Goyal, managing director & senior partner, BCG India.
Already, nearly 40 per cent of Indian fintech companies have a presence outside India, while the BCG indicates that 73 per cent of those surveyed are actively considering international expansion opportunities. Most preferred markets are countries in south-east Asia, followed by North America.
“Several Indian fintechs are well-positioned to establish a global footprint owing to their transplantable business models and proven track record of success,” said a statement issued by Ficci. “To ensure that Indian fintechs achieve their potential, all stakeholders—fintechs, financial institutions and policymakers have a role to play.”
The report also indicates that the total value of India’s fintech industry is estimated to rise threefold to as much as $150-160 billion in four years. Despite the pandemic, the sector saw 3 new unicorns and 5 new soonicorns (companies slated to be unicorns soon, having crossed a valuation of $500 million ) since January 2020.
“The fintech industry in India has been growing at a fast clip. Fintech players are redefining the business models across different segments of financial services industry, helping improve service delivery and contributing to digital financial inclusion,” commented FICCI secretary-general Dilip Chenoy.