India is one of the fastest-growing fintech markets in the world. As of March 2020, India, alongside China, accounted for the highest fintech adoption rate (87%), out of all the emerging markets in the world. On the other hand, the global average adoption rate stood at 64%. With the burgeoning number of start-ups, the fintech industry in India is attracting increased investments. Initiatives undertaken by the government to drive digitization like demonetization, Jan Dhan Yojana, Aadhaar and Unified Payment Interface (UPI) have further contributed to the growth of the industry. Market insights: The fintech market in India was valued at ~INR 1,920.16 Bn in 2019 and is expected to reach ~INR 6,207.41 Bn by 2025, expanding at a compound annual growth rate (CAGR) of ~22.70% during the 2020-2025 period. Increased adoption of the internet and improved digital infrastructure are driving the fintech market in India. However, lack of consumers trust on digital modes of payment, and rising threat of cyber and data security are impeding market growth. Further, the industry is witnessing increased application of artificial intelligence (AI) and Big Data for enhancing personalized offerings. New business models like Neobanks are expected to revolutionize the Indian fintech market. Segment insights: Payments, lending, insurtech, wealthtech and banktech are the key operative segments within the fintech market. The payment segment comprises M-wallets, PPIs, merchant payments, PoS services, international remittance and trading in crypto currencies. The lending segment includes peer-to-peer lending, crowd funding, loans, online lenders, on-book lending by NBFCs and credit scoring platforms. Insurtech is a niche segment in the Indian fintech ecosystem consisting of insurance aggregators, IoT, wearable and kinematics. Wealthtech includes robo-advisors, discount brokers and online financial advisors. The principal function of the banktech segment is to utilize data points like financial transactions and spending patterns to create risk profiles of consumers. In 2018 and 2019, the payments segment received the highest amount of venture capital investments, followed by the lending and insurtech segments. Wealthtech and banktech are the emerging segments of the industry. Impact of COVID-19: As the discretionary spending in the industry has gone down considerably, the number of digital transactions has declined. This has severely hampered cash flow for leading businesses in the country. However, the industry witnessed a ~42% rise in the use of digital payment modes. But purchasing only essential products would not be enough to drive uptake of digital transaction in the Indian fintech ecosystem. Healthcare, bill payments, grocery and food are witnessing rapid digitization, while the entertainment, fashion, travel and tourism industries are at a standstill, thereby reducing transaction volumes in the country and severely affecting the Indian fintech industry. Competition analysis: The fintech market in India is highly competitive with incredible growth potential; however, stringent regulatory norms tend to act as significant entry barriers for new players entering the Indian fintech space. The country is growing into a hub for fintech start-ups, and global investors are actively investing in prospective Indian fintech start-ups. In terms of investment, PayTM, Cred, Acko, InCred Finance and BharatPe emerged as the top five fintech players in 2019. Companies covered: ET Money ezetap Freecharge Payment Technologies Private Limited One Mobikwik System Private Limited Mswipe Technologies Private Limited One97 Communications Limited PhonePe Private Limited Pine Labs Private Limited PolicyBazar.com PayU Payments Private Limited
Table of Contents
Chapter 1: Executive summary Chapter 2: Socio-economic indicators Chapter 3: Introduction 3.1. Market definition and structure 3.1.1. The market system for fintech in India 3.1.2. Consumers for fintech in India Chapter 4: Global fintech market overview 4.1. Current market scenario 4.1.1. Market size and growth forecast (2018-2025) 4.2. Percentage of digitally active consumers using fintech (2019) 4.3. Consumer fintech adoption rate (2019) 4.4. India versus other fintech hubs around the world Chapter 5: India fintech market overview 5.1. Current market scenario 5.1.1. Market size and growth forecast (2018-2025) 5.2. Major fintech clusters in India 5.3. Government initiatives Chapter 6: Impact of COVID-19 on the Indian fintech industry 6.1. Impact of COVID-19 on the Indian fintech industry Chapter 7: Market segment-wise opportunity analysis 7.1. Venture capital funding by fintech segments 7.2. Payments overview 7.2.1. Drivers and challenges 7.2.2. Examples of fintech start-ups 7.2.3. Impact assessment on payments fintech 7.3. Lending overview 7.3.1. Drivers and challenges 7.3.2. Examples of fintech start-ups 7.3.3. Emerging lending business models 7.4. InsurTech overview 7.4.1. Drivers and challenges 7.4.2. Examples of fintech start-ups 7.5. WealthTech overview 7.5.1. Drivers and challenges 7.5.2. Examples of fintech start-ups 7.6. BankTech overview 7.6.1. Liquidity management 188.8.131.52. Drivers and challenges 184.108.40.206. Examples of fintech start-ups 7.6.2. Trade finance 220.127.116.11. Drivers and challenges 18.104.22.168. Examples of fintech start-ups 7.6.3. Forex & treasury 22.214.171.124. Drivers and challenges 126.96.36.199. Examples of fintech start-ups 7.6.4. Capital markets 188.8.131.52. Drivers and challenges 184.108.40.206. Examples of fintech start-ups Chapter 8: Market trends Chapter 9: Market influencers 9.1. Market drivers 9.2. Market challenges Chapter 10: Competitive landscape 10.1. ET Money Company information Business description Products/services Key people Financial snapshot Note: Similar information covered for all other public companies. Private companies' data given on best effort basis. 10.2. ezetap 10.3. Freecharge Payment Technologies Private Limited 10.4. One Mobikwik System Private Limited 10.5. Mswipe Technologies Private Limited 10.6. One97 Communications Limited 10.7. PhonePe Private Limited 10.8. Pine Labs Private Limited 10.9. PolicyBazar.com 10.10. PayU Payments Private Limited Chapter 11: Website benchmarking Chapter 12: Funding 12.1. Funding raised by top 20 Indian fintech companies Chapter 13: Recent Developments Chapter 14: Acronyms Chapter 15: Appendix 15.1. Research methodology 15.2. About Netscribes 15.3. Disclaimer
This research report involves complete picture of the market with the help of in-depth secondary and primary research. This research report studies several aspects of the market and analyze vital industry influencers. Extensive secondary research has been conducted using paid as well as open access data sources in order to gather information on the market and parent market. These key findings are then analyzed and validated with the help of in-house data models and primary discussions with key industry participants and experts across the value chain
Research Tools and Models
- Top-Down Approach and Bottom-Up Approach
- QFD Modeling for Market Size and Share Calculation
- Regression, Variable and Impact Analysis
- Penetration Modeling
- It comprises briefing about market dynamics and business opportunities and strategies.
- Finally, all the research findings are validated through interviews with in-house industry experts, freelance consultants and key opinion leaders etc.
It involves various mathematical tools, models, projection, and sampling techniques. It involves following steps:
- Identification of market variables and market size derivation
- Assessment of future prospects, opportunities and market penetration rates by analyzing product commercialization, regional trends etc.
- Evaluation historical market trends and derivation of present and future year-on-year growth trends