A recent study by KPMG and NASSCOM, has indicated fintech is today becoming a new segment in the Indian financial services sector. The report says there are some 12,000 startups in 2015. The report, ‘Fintech in India: A global growth story’, says the Indian fintech market is expected to double from $1.2 billion to $2.4 billion in the next 4 years and the investment activity in fintech startups in India was $1.5 billion in 2015. It finds that fintechs tend to sustain themselves in view of the growth in both mobile and internet coverage and digital payments processing in public services even as the country offers scope for banking penetration in unbanked and underbanked areas. This, says the report, will help the fintech software and services sector to boom multifolds. The Indian customers – consumer or corporate – have also shown an unexpectedly fast adoption rate towards fintech offerings, the report adds and maintains that even though the government initiatives have been the real thrust for the growth of the fintech industry, there still exist potential growth deterrent for the budding space.
