India’s Fintech Sector Grows 50% in 2023, Outpacing Global Average
India’s fintech sector has experienced a remarkable 50% growth rate in 2023, compared to the global average of 13%. According to a flagship report by Boston Consulting Group (BCG) titled ‘Building Bridges for the Next Decade of Finance’, revenues in the Indian fintech sector are projected to reach USD 190 billion by 2030, contributing to over 20% of all banking revenues.
The report highlights that the global fintech market is on track to achieve USD 1.5 trillion in revenues by 2030, with significant contributions from the Asia Pacific and North American regions. BCG emphasizes the importance of leveraging emerging technologies like Generative AI and API-based open architecture for functions such as customer service automation and fraud detection.
Yashraj Erande, Global Head of Fintech and India Head of Financial Institutions at BCG, noted, “It is also encouraging that Indian Fintechs are demonstrating a path to profitability earlier than what was expected 2-3 years ago.”
The report also underscores the maturity and scalability of India’s financial infrastructure and digital payment solutions, particularly the Unified Payment Interface (UPI). UPI is a leading digital payment platform in India, and the government aims to extend its benefits internationally.
Doubts Revealed
Fintech -: Fintech stands for Financial Technology. It means using technology to improve financial services like banking, payments, and investments.
Boston Consulting Group -: Boston Consulting Group is a company that gives advice to businesses on how to improve and grow. They study different industries and make reports.
USD 190 billion -: USD 190 billion means 190 billion US dollars. It’s a way to measure a lot of money, and it shows how big the fintech sector could become.
Generative AI -: Generative AI is a type of artificial intelligence that can create new content, like text, images, or music. It’s like a smart computer that can make things on its own.
API-based open architecture -: API-based open architecture means using special tools called APIs to let different software programs talk to each other easily. It helps different apps and services work together smoothly.
Unified Payment Interface (UPI) -: Unified Payment Interface (UPI) is a system in India that allows people to transfer money between bank accounts instantly using their mobile phones. It’s very popular and makes payments easy.
BFSI SaaS -: BFSI stands for Banking, Financial Services, and Insurance. SaaS means Software as a Service, which is software you can use over the internet. BFSI SaaS means software services for banking and finance that you can use online.