| |March 20219WHAT IS DRIVING THE FINTECH MARKET?India is amongst the fastest growing FinTech markets in the world. India ranked the highest globally in the FinTech adoption rate with China. As per a report, by Research and Markets, as of March 2020, India alongside China, accounted for the highest FinTech adoption rate 87%, out of all the emerging markets in the world. On the other hand, the global average adoption rate stood at 64%. The report also states that "The FinTech market in India was valued at Rs 1,920.16 billion in 2019 and is expected to reach Rs 6,207.41 billion by 2025, expanding at a compound annual growth rate (CAGR) of approximately 22.7 percent during the 2020-2025 period. Increased adoption of the internet and improved digital infrastructure are driving the FinTech market in India. KEY DRIVERS-1. Government - The government is naturally the crucial and prime catalyst for the success of FinTech in a heavily regulated financial industry. Various initiatives under Digital India, like easy Banking facilities for all, simplification of procedures relating to financial instruments like Permanent Account Number (PAN), unique identification process of Aadhaar, simplification of tax procedures through the goods and services tax (GST), etc, have contributed significantly in converting the Indian economy to become a cashless digital economy. 2. Right Entrepreneurial spirit to drive the growth of innovative start-ups- The sector is driven by young, first generation entrepreneurs who are now competing with the largest financial institutions in an extremely tough market. 3. Covid-19 Pandemic - As Covid-19 retreats and the world opens once again, there are new normals that have been set across various facets of life. Technological advances such as Artificial Intelligence and Machine Learning will continue to drive automation into businesses and feed processes and engagements that will deliver new levels of efficiency with products that are tailored to business outcomes and individual customer preferences. The FinTech sector has registered a good accelerated growth, as it has been in high demand for innovative products and services that businesses are seeking to address their pain points of dealing in the post-pandemic world.4. Funding across FinTech's - Indian FinTech's have seen significant funding from venture capital and private equity firms. According to a report by Deloitte, FinTech's have received a total investment of US$ 8 billion1 across 1,031 dealsThe availability of right technical skills, significant growth in capital investments, emergence of government policies, and an entrepreneurial and innovative mind-set are the driving forces to establish FinTech in India. India now has a system in place that gives new companies a chance to exponentially develop into enormous organizations.Today, India stands tall as one of the largest digital hubs in the world. India produces over 1.5 million engineers year after year, a number that is only rising which states that some of the best tech talents in the industry are in India. The availability of right technical skills, significant growth in capital investments, emergence of government policies, and an entrepreneurial and innovative mind-set are the driving forces to establish FinTech in India
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