State of the India Fintech Union in 2022
The India Fintech story is at a fork in the road with sceptics raising many questions. Indian Fintechs have undeniable scale, provided superior value to customers and have emerged resilient through a once-in-a-lifetime crisis in Covid. Fintechs are making a strong contribution to Indian economy and play a powerful role in the provision of full-fledged financial services to all Indians. We see this collective segment to be mission critical for the $5 trillion Indian economy. 36% of Fintech customers are new-to-credit, vs 22% for Banks. “Fin” in FinTech is acquiring a bigger font. This means a greater focus on profitability and governance. Relentless focus on innovation and customers made Fintechs successful. This should continue. Nonetheless, new muscle needs to be added for newer priorities. ‘Growing together’ in partnership with incumbents and private innovation on public utilities will be key moats.
With this context, BCG has partnered with Matrix Partners India to release a report, which is based on a survey of over 125 Founders and CXOs to highlight the biggest challenges the industry faces today, the imperatives for Fintech founders, the role incumbents will play and the policy enablers that will support the industry.