Indian financial technology (fintech) market is expected to double to $2.4 billion by 2020, primarily triggered by rising customer experiences, e-commerce and smartphone penetration, according to a report. Emergence of fintech companies in India is a prelude to the transformation in payments, lending as well as personal finance that has attracted significant investor interest, the joint report by KPMG India and Nasscom 10,000 Startups said. Also Read - FIR filed against Twitter India again, now over child pornography contentAlso Read - Mi Notebook Pro X to be Xiaomi's most expensive laptop yet, launch tomorrow
“Investor inclination in startup funding is evident in the swelling number of angel deals from 370 in 2014 to 691 in 2015 and investments increasing multi-fold from USD 247 million in 2014 to $1.5 billion in 2015,” the report said. Global fintech investments rose to $19 billion last year with more than USD 8 billion coming from the US. The prima facie catalyst for the success of the domestic fintech industry is the government and the multi-pronged approach it has taken towards enabling higher penetration of these digital financial platforms for institutions and the public, it added. Also Read - Ola to offer free oxygen concentrators to the needy
“The roadblocks of low technological and digital infrastructure coupled with the the lack of authentic consumer information can be overcome through continuing government initiatives, regulatory mandates and a robust business environment,” said Naresh Makhijani, Partner and Head of Financial Services, KPMG India.
There are about 12,000 fintech startups globally and India has close to 200 of them, the report said. Indian customers have shown an unexpectedly fast adoption rate towards fintech offerings. Primary drivers for this change include the significant growth in both mobile and internet coverage and digital payments processing in public services, the report said.