Fintech India has a growing industry to grab a sizable chunk in the global fintech sector, states’ States of Fintech Union 2022′ reported by the Boston Consulting Group. As per the company’s new record, CAGR grew by 20 per cent, which is more than US-16 per cent, UK-15 per cent and China-10 per cent.

“Clocking over $800 billion annual payments transaction value, Fintechs have made a strong contribution to the Indian economy and play a powerful role in providing full-fledged financial services to all Indians. We see this collective segment as mission critical for the $5 trillion Indian economy,” the report stated.

India’s global fintech annual growth rate is 20 per cent, whereas India’s share in global fintech funding is 14 per cent. Hence, the digital investment grew in 2021 from 4.5 million to 9 million in 2022 by registering a growth of 100 per cent. The neo banking volume, at the same time, rose from 2.5 million to 4 million, reporting a 60 per cent growth in just one year, reports media. India produced more than 23 unicorns in this sector against 172 in the US, 30 in the UK and 36 in China.

“Covid further boosted payments space, leading to 210 per cent spike in funding between 2020 and 2021,” it said.

The growth is so phenomenal that these firms are phasing out traditional players off their perch. For instance, fintech firms now occupy a 36 per cent share in new-to-credit customers against 22 per cent by banks. Also, UPI transactions are made for the payment of shares which is 93 per cent against 7 per cent by banks, and the market share in active broking clients is 80 per cent against 20 per cent share by traditional broking firms.

The fintech firms will need to re-evaluate their financials and enable cost controls as needed to be able to continue innovative investments and scale.