Fintech infrastructure plays a vital role in enabling financial institutions and tech platforms to innovate and offer a wide range of financial services
While fintech infrastructure is already widespread in India’s financial ecosystem, we are now at a real inflexion point, where several significant outcomes will emerge from India, addressing not only the Indian market but also global financial markets
The Indian fintech infrastructure industry has the potential to grow to a $10 Bn revenue opportunity in 2030
It is now easier for users to obtain financial services products than it is to shop online. Account opening, credit approval, and insurance purchase are all 5-minute processes, thanks to the robust infrastructure that powers financial institutions. Fintech infrastructure is the hidden scaffolding that supports the wide range of financial services we can access with a single tap or click. This crucial infrastructure is the beating heart of the fintech revolution, enabling banks and many tech platforms to innovate and bring their products to life.
While fintech infrastructure is already widespread in our financial ecosystem, we believe that we are now at a real inflexion point, where several significant outcomes will emerge from India, addressing not only the Indian market but also global financial markets.
There are multiple tailwinds driving this inflexion point: large consumer distribution platforms, regulatory clarity, the success of large-scale public infrastructure, and financial institution adoption of technology have all combined to create the ingredients for a perfect storm.
This opportunity has the potential to grow to a $10 Bn revenue opportunity in 2030. As founders build infra companies, they will need to start with highly specialised and verticalized use cases or customer personas, have a maniacally high bar on product fidelity and build the muscle to sell to large financial institutions.
Fintech Infra Is At An Inflexion Point, Driven By Multiple Tailwinds
The ecosystem has seen the evolution of the tech, regulatory and financial services landscape in India from a unique vantage point. As we look back at this evolution and where we are today, multiple drivers become apparent that will accelerate the demand for financial infrastructure.
Emergence Of Large Distribution Platforms
By 2030, over 700 Mn new users are expected to transact online and spend more than $500 Bn. Users will transact across ecommerce, food delivery, ride-hailing, local services and other online retail platforms.
Infrastructure that embeds financial products in purchase journeys can increase access to currently underserved customers, increase efficiency by unlocking new revenue streams from financial products and making the existing platform more affordable, and improve customer transaction experience.
Regulatory Measures Driving Clarity
India has one of the most measured yet progressive regulatory bodies (RBI, SEBI, IRDAI), which has taken a balanced approach to consumer protection while promoting measures to drive financial product penetration.
We believe that regulations will increase clarity in how financial institutions collaborate with technology partners, accelerating the need for infrastructure and plumbing plays.