Disbursement amount by fintech in India has grown at 41% CAGR from FY21-23, according to Praxis Global Alliance, a global management consultancy. The report titled Time to Reflect and Renew delineates the journey of fintechs in India, which have emerged as a powerful force, driving technological advancements, and revolutionizing the financial services industry.
The report observes that fintechs have worked with a customer-first objective that has helped them understand and solve customer needs with a unique approach. Rapid adoption UPI by fintechs has revolutionized peer-to-peer payments in India. Fintech UPI players, such as PhonePe, Google Pay, and Paytm, have captured over 95% market share, showcasing their dominance in the UPI space and their impact on the digital payment ecosystem.
Digital lending market in India has grown at 33% CAGR from FY19-23, reaching Rs 29.05 trillion in FY23, the report stated. In the same period, digital transactions surged by 44%.
Fintech lending players have leveraged AI/ML technologies to incorporate advanced underwriting models, enabling faster and more accurate credit assessments. These technologies have streamlined the lending process, making it more efficient and accessible to a broader range of borrowers.
