A recent report titled ‘Unlocking Indian Enterprise Fintech,’ jointly conducted by Chiratae Ventures and The Digital Fifth, sheds light on the rapid evolution within the BFSI (banking, financial services, and insurance) sector. Projections from the study suggest that the enterprise fintech industry in India is on track to hit the $20 billion mark by 2030, marking a substantial leap from its estimated size of $2.7 billion in 2022.
The report underscores the ongoing transition toward complete digitalisation by banks and financial institutions, particularly for the Retail and MSME segments over the next decade. Notably, innovations within the Indian BFSI landscape have been propelled by regulatory initiatives and public infrastructure projects such as IndiaStack, Account Aggregator, and ONDC.
In response to this shifting landscape, enterprise fintech startups are expected to seize the burgeoning opportunities, focusing on optimising product, sales, and service delivery processes across key sectors like BankingTech, LendingTech, PayTech, RegTech, InsurTech, and WealthTech.
Anticipated growth in technology investment across financial segments is being driven by the digital infrastructure revolution and evolving regulatory frameworks, including the Digital Personal Data Protection Act (DPDP) of 2023. Both large and small-to-mid-sized banks are intensifying their tech investments to expand their digital footprint and scale their digital operations.
Moreover, fintechs and Embedded Finance players are enhancing customer engagement through strategic collaborations with banks, extending the digital transformation into more complex domains like trade finance and treasury management.
The evolving regulatory frameworks around digital lending are also stimulating technology spend by lenders, who are exploring innovative solutions such as pre-approved loans, B2B BNPL (Buy Now Pay Later), supply chain finance, and secured credit.
