Indian enterprise fintech market size expected to grow to $20 bn by 2030

Indian enterprise fintech is poised expand to a market size of approximately $20 billion by 2030, estimates a new report by Chiratae Ventures and The Digital Fifth. The report focuses on enterprise fintech’s role in enhancing efficiency of the Banking, financial services and insurance (BFSI) segment across sectors like bankingtech, lendingtech, paytech, insurtech, and weathtech.

There has been a shift in viewing technology as a cost centre by the BFSI industry to managing profit and loss as well as to reduce the cost-to-income ratio. In the coming decade, the investment in technology across financial segments is expected to witness a high growth, to which public infrastructure like the India Stack, Account Aggregator, ONDC, KYC and DBU regulations forms a strong foundation, the study outlined.

The growing digitisation has led to the growth of embedded finance platforms and increased investments in the API-enabled infrastructure — paving way for anything-as-a-service (XaaS). Banking (BaaS), Lending (LaaS) and Payments (PaaS), have already emerged as key areas of investment for Venture Capitalists. Further, according to the report, banks and non-banking financial companies will evolve to become fully digital for the Retail and Micro, Small & Medium Enterprises (MSME) segments in the next 10 years.

“Financial Sector Enterprises are at a cusp of digital transformation, and with regulators’ continued support, FinTechs building technology-led solutions will play a pivotal role and capture this burgeoning opportunity. We expect Chiratae to play an active part in the Enterprise FinTech space in the coming four to five years,” said TC Meenakshisundaram, founder and vice-chairman, Chiratae Ventures.

Lastly, India’s wealth management sector is seeing new entrants and fresh tech investments. The report said that there has been a decline in the focus on traditional physical assets, with more increasing inclination towards an investment mindet. India is the ninth largest Life Insurance market globally and is expected to reach $200 billion by 2027.