Banks and financial institutions in India are expected to shift towards 100% digital solutions for the retail and MSME segments over the next decade, leading to significant opportunities for enterprise fintech companies. According to a report by Chiratae Ventures and The Digital Fifth, the Indian enterprise fintech market is projected to reach $20 billion by 2030. The report focuses on six essential sectors within enterprise fintech: BankingTech, LendingTech, PayTech, RegTech, InsurTech, and WealthTech.
The report highlights the rapid transformation of the BFSI industry in India, driven by demand for lower costs, scale, innovation, and agility. Investment in technology is expected to increase across financial segments, with public infrastructure like the India Stack, Account Aggregator, and ONDC playing a crucial role. The recent Digital Personal Data Protection Act (DPDP) of 2023 is also driving financial institutions to improve data governance and reorient their architecture and business.
The report points out that large banks in India are heavily investing in technology and scaling their digital businesses, which is being followed by small and mid-sized banks. Fintechs and embedded finance players are driving customer engagement in partnership with banks, with a focus on complex business banking such as trade finance and treasury. Regulatory frameworks around digital lending are also evolving, leading to increased technology spending by lenders.
In terms of payments, the report states that India is rapidly moving towards a cashless economy and there is a demand for agile Payment as a Service (PaaS) platforms to orchestrate transactions. Regulatory initiatives, such as the government’s Digital India initiative and India Stack APIs, are driving demand for RegTech solutions, ensuring compliance, data security, and seamless transactions across the fintech ecosystem.
India’s wealth management sector is experiencing growth, with increasing asset classes and new entrants. The country is also witnessing technological advancements in insurance, such as IoT, telematics, and surveyors, which are improving trust, reducing fraud, and enhancing decision-making in claims and underwriting.
The report concludes that the enterprise fintech market in India has significant potential for growth, with multiple contenders driving innovation and advancements in the BFSI sector.
