BENGALURU: Enterprise FinTechs are poised to expand, with projections estimating a market size of $20 billion by 2030. Chiratae Ventures in association with The Digital Fifth has released a report titled ‘Unlocking Indian Enterprise Fintech Market’, which says BFSI industry is undergoing a rapid transformation amid demand for lower costs, scale, innovation, and agility.
Instead of banks viewing technology as a cost centre, the thought process has started to realign, and it is being seen as a driver to manage profit and loss as well as cut cost-to-income ratio, the report said.
Investment in technology across financial segments is expected to see high growth over coming decade. “Backbone of this digital innovation is revolutionary with public infrastructure like India Stack, Account Aggregator, ONDC, KYC and DBU regulations. Digital Personal Data Protection Act (DPDP) of 2023 will push financial institutions and their partners to reorient their architecture and business for better data governance,” the report added.
Sudhir Sethi, founder and Chairman, Chiratae Ventures, said, “Chiratae projects Enterprise FinTech industry to be over $20 bn opportunity by 2030.” FinTechs and embedded finance players are driving customer engagement in partnership with banks, and this digital push is gradually expanding to complex business banking, including trade finance and treasury. Meanwhile, regulatory frameworks around digital lending have continued to evolve and are positively influencing technology spend by lenders.