India outpaces global level fintech growth in 2023; poised to reach USD 190 billion in revenue by 2030: BCG
Aug 28, 2024
New Delhi [India], August 28 : India's fintech sector has logged a 50 per cent growth rate in 2023 compared to the global average of 13 per cent.
Boston Consulting Group (BCG) has prepared a flagship report titled 'Building Bridges for the Next Decade of Finance', where it noted that revenues in the Indian fintech sector are projected to reach USD 190 billion by 2030, contributing to over 20 per cent of all banking revenues.
The report comes at a time when the Fintech sector is in maturation mode.
In terms of market size, the fintech sector globally is on track to achieving USD 1.5 trillion in revenues by 2030, predominantly driven by the Asia Pacific, along with the North American region, expected to generate three times higher revenues than the next best region by 2030.
According to the BCG report, the path ahead for India is to leverage critical and emerging technologies - Generative AI and API-based open architecture - across diverse functions such as customer service automation to fraud detection.
Yashraj Erande, Global Head of Fintech and India Head of Financial Institutions at BCG said, "It is also encouraging that Indian Fintechs are demonstrating a path to profitability earlier than what was expected 2-3 years ago."
The BCG report also highlighted how India can internalize its payment solutions.
Indian financial infrastructure and digital payment solutions are highly mature and scalable, capable of supporting the exponential digitization needs of global institutions.
Indian BFSI SaaS players, in particular, have a significant opportunity to expand internationally and drive in revenues, said global consultancy firm BCG.
Unified Payment Interface (UPI) is a key innovation driving India's fintech sector. It is India's leading digital payment platform. Payments through digital means in India are hitting fresh highs, as its citizens are increasingly adopting the emerging modes of transacting on the internet.
Among others, a key emphasis of the Indian government has been on ensuring that the benefits of UPI are not limited to India only; other countries, too, benefit from it.
