“Even with global economic uncertainty, the fintech sector in India has continued to show its resilience through innovation and customer-first approach. This surge and growth shows the dynamic nature of this industry and how over the years, it’s become an integral part of the growth story of millions of internet-first, MSME and large scale businesses in India.
The recent PA licenses released by RBI will be a big game changer for the Indian fintech sector – ushering in more innovation as well as opportunities for businesses to access the best digital payment solutions. Introduction of multiple industry first efforts like – credit on UPI, Conversation Payments in UPI, UPI Lite in 2023 are also a strong indicator of how fintech players are making this ecosystem inclusive, adaptable and robust for both consumers and businesses.
Looking ahead, 2024 will be a year where we will see an increased focus on building products that continue to be relevant for customers and the financial ecosystem. One of the key focuses undoubtedly will be cybersecurity – enhancing security measures along with user awareness. We will see the introduction of regulatory frameworks that will help curb risk to build a safer and more secure digital payment environment, reinforcing the trust of users in digital transactions.
Success and mass adoption of UPI – especially credit lines on UPI will truly democratise credit access to millions. In 2024, the industry will focus on enhancing UPI’s accessibility, especially in rural areas and among diverse age groups. Innovations like UPI 123PAY and UPI Lite are just the beginning. The industry will work collectively to introduce more user-friendly features and increase UPI’s adoption beyond the current 30% of the population.
The next year will also witness the emergence of more governance frameworks and regulatory standards, the promotion of ethical AI, and increased acceptance within the financial services sector. This will drive advancements in regulatory technology (RegTech), which is already at a pivotal point. Solution providers and regulated entities stand to benefit significantly within the RegTech ecosystem. As regulatory requirements become more stringent and data privacy concerns grow, the demand for RegTech solutions will inevitably increase. RegTech will not only redefine compliance but also empower businesses to focus on innovation and growth, that’s crucial for India’s economic progress.
Overall, Fintech players in 2024 will continue to grow in confidence while transitioning towards stronger value creation leading to building of sustainable and profitable businesses. Innovation, increased cyber security, and positive government reforms will catapult the Indian Fintech Ecosystem towards the projected growth of USD 2.1Tn by 2030.”