FINTECH INDIA landscape and data presentation

on fintech industry in India elaborates on how the fintech is in india

1. FINTECH INDIA

3. Source : CLSA, Blume, MOSPI
Services Sector Dominates the Economy

4. Source: Beams Fintech, JM Financial

5. Source: Beams Fintech, JM Financial
Large unpenetrated Market

6. As sector gained prominence, it attracted Regulatory Attention
Source: Beams Fintech, JM Financial

7. Regulator and Government increasing Focus and Promoting Innovation
Source: Beams Fintech, JM Financial

9. Key Challenges
•Regulatory Risks:
Regulations for fintech are constantly evolving. This creates difficulties for companies that must stay compliant.
Changing rules around taxes and data privacy can raise costs. If not
•Business Model survival Challenges- Paytm payments banks
•Cost of doing Business or Revenue loss: PB Fintech
•Regulatory Penalties and Reputational loss.
•Capital Challenges:
Startups also require large infusions of cash to fund innovation and operate properly. Plus, fundraising is a
competitive activity, with several startups vying for the same pool of investors.
•Indian fintech sector is witnessing a slowdown in funding. In the first half of 2024, for instance,fintech
startupssaw a59% drop in funding, collectively raising $795 million vis-a-vis $1.9 billion raised in the first half of
2023.

10. Key Challenges
•Human Capital Challenge:
Hiring and Retaining talent pool is one of the biggest challenge for the companies more so for a startup.
As a country we underinvest in Human capital.
Skilling, Upskilling and Reskilling has been a National challenge.
•Customer Acquisition and Retention:
Customer preferences are constantly evolving
Evolving competition
Ease of use and Reach
Customer Education and Engagement.

11. Key Challenges
•Tech Obsolescence Cycle:
Shortening of Tech obsolescence cycle.
Keeping up with innovation
Unlearning, Learning and Relearning.
Security, Fraud and Data Threats:
•
• No of Frauds in FY 24 has increased by 3-fold as per recent RBI data.
• Since 2022-23, UPI frauds have led to Rs 2,145 crore in losses across 2.7 million incidents
•Economic Survey 23-24 stated that as per the information reported to and tracked by the Indian Computer
Emergency Response Team (CERT-In), the number of observed and handled cybersecurity incidents stood at 11.6
lakh, 14 lakh and 13.9 lakh respectively during 2020, 2021 and 2022.