The Second Wave: Resilient, Inclusive, Exponential Fintechs

Saurabh Tripathi Yashraj Erande Vipin V Neetu Chitkara Vivek Mandhata Vikram Khanna Tirtha Chatterjee Sarthak Harnathka Aviral Kacholia

Innovation stands as the cornerstone of remarkable progress, propelling the world towards new horizons. As we forge ahead, Fintechs embark on a journey to redefine the world of finance through innovation. Covid-19 and its aftermath has been a deeply clarifying journey for Fintechs. Fiscal prudence, sustainable differentiation, high quality governance, resilience are all phrases finding favor amongst Fintechs. Valuations are mean-reverting and flow of funding reflects the change in regime. In this context, BCG, as the thought leadership partner of the Global Fintech Fest 2023, has launched the flagship report – The Second Wave | Resilient, Inclusive, Exponential Fintechs.

The report is categorized into three chapters. The first chapter is rich with data on trends in revenue and capital flows for Fintechs across the three dimensions of region, segment and time period. Global Fintech revenues will reach $1.5 Trillion by 2030, with APAC and NAMR emerging as major hubs. Digital Payments and Lending will dominate, while Neo Banking, InsurTech, and Financial Infra will experience the fastest growth. The second chapter provides unvarnished views of what is on the mind of the Fintech industry in India. In India, 85% of CXOs believe investors are now prioritizing sustainable growth with a focus on profitability. Fintechs are reducing marketing costs and customer acquisition costs instead of delaying expansion. Focus on collaboration rather than competition. Indian regulatory framework is being perceived favorably, with an ask for greater clarity and consistency. The third chapter is a bold take on what it means to become a Fintech nation. India is already on a journey to becoming the "Fintech Nation" (#3 in terms of deal volume, number of fintechs and number of unicorns). Needs to catch-up on four dimensions – Fintech for all Indians, driving investments in tech enablers, financially viable Fintechs, and India for the world – to realize full potential.