According to the Report, it is projected that the enterprise fintech industry will grow to approximately $ 20 billion by 2030 from $ 2.7 billion in a year of concern – 2022. The transformation towards 100% digital is on the path for retail and MSME segments of banks and financial institutions over the next decade
As this opportunity continues to grow over the next decades, enterprise fintech start-ups will be expected to take up on it. The BFSI segment faces rapid transformation not only in the direction of demand for lower costs, scale, innovation and agility but as a recent report forecasts that the enterprise fintech industry will grow to $20 billion by 2030.
This is important as the industry size was reported to be around $2.7 billion in 2022 only.
A report named ‘Unlocking Indian Enterprise Fintech’ by Chiratae Ventures with The Digital Fifth has pointed out that banks and financial institutions are going to be 100% digital for the retail and SME segments over a decade from now even as major innovations in India BFSI industry have been driven mainly by regulators and public infrastructure such as IndiaStack, Account A
Even more important, enterprise fintech start-ups have a future trend which will be gaining momentum over the next decade. The report focuses on Enterprise fintechs that play a pivotal role in streamlining product, sales, and service delivery as well as enhancing efficiency within the BFSI segment in six essential sectors: BankingTech, LendingTech, Pay Tec, Regteck Insurtech, and Wealth tech.
The investment in technology across the financial segments throughout this decade is estimated to showcase rapid growth rates. The base of digital innovation is restructuring with public infrastructure such as India Stack, Account Aggregator, ONDC KYC and DBU regulations. The latest Digital Personal Data Protection Act (DPDP) of 2023 will also force financial institutions and their partners to realign the architecture as well as business for better data governance,” it said.
In addition, major banks have begun to make big investments in technology and are focusing on growing their digital business, which is being replicated by small- and mid-sized banks.
At the same time, cooperation between fintechs and Embedded Finance, on the one hand, with banks, is growing customer engagement while digital transformation gradually spreads to complicated business banking processes such as trade finance or treasury.
Both regulation and policy frameworks relevant to the digital lending sector continue evolving positively influencing technology spend by those who are trying innovations such as pre-approved loans, B2B BNPL, and supply chain finance among other things stating a release.
The last decade witnessed a continuous flow of funding into enterprise fintechs. This, along with the entry of new age players in various Enterprise segments, are highlighting what has not been previously noticed – the potential scope on untapped markets.”
Disclaimer – We have collected this information from various trustworthy sources on the Internet, and the facts have been checked manually and verified by our In House team.
