FINTECH
What is the Fintech industry?
Fintech has completely changed the face of the banking industry. The goal of digital technology is to improve and automate the delivery and use of financial services. Fintech has assisted business owners and consumers in managing their financial services through specialized software and algorithms. The Fintech industry provides various financial services such as money transfers, cheque depositing, investment management, and applying for credit or debit cards online without the assistance of a professional.
Segments of Fintech Industry Payments- Payment innovations in fintech include mobile payments, contactless payments, e-wallets, identity verification technology, artificial intelligence, and machine learning. Online payment transactions have increased from Rs. Two trillion in 2019 to Rs. Four trillion in 2020.
Lending- The lending ecosystem in India has evolved into a multi-layered system with participants such as fintech start-ups, digital stacks, data suppliers, key platforms (LOS/LMS, Digital Collection), and credit bureaus. Digital lending has received $0.73 billion of investment in 2021.
Insuretech- The use of technology in the insurance industry. Technologies like AI, IoT, predictive modeling, open insurance models, connected devices have increased the customer base.
Wealthtech - This segment uses the technology that assists individuals and professionals in managing their finances. In 2020, India had nearly 4 million wealthtech investors and is predicted to expand by 12 million by 2025.
Neo banks- Banks that do not have a physical presence are called Neo Banks. YONO (State Bank of India), Digibank (DBS Bank), and Kotak 811 are three of India's most popular neo banks (by Kotak Bank). The top four global neobanks are valued at $100 billion, and Indian fintech companies like Open, RazorpayX, Fi, and Jupiter are also making progress. Source - india-briefing.com
Growth of Indian Fintech Industry The fintech industry is valued at US$111,240 million in 2019. It is expected to reach US$158,014 million by 2023, with a CAGR of 9.2 percent. The figures are expected to rise to US$191,840 million by 2025 and US$325,312 million by 2030, with a CAGR of 10.2 percent and 11 percent. Source- penser.co.uk The Indian fintech Industry is expected to grow in the next five years with a compound annual growth rate of 22% and currently, India has become the third-largest FinTech ecosystem in the world, after US and China. Source - bfsi.economictimes.indiatimes.com
Government Initiatives Jan Dhan Yojana - It is the World's largest financial initiative taken by the government to enhance the Fintech Industry. It has helped over 435mn people for enrolment in a new bank account.
Financial Literacy - This initiative aims to enhance financial literacy in India by setting up National Centre for Financial Education and implementing the centre for Financial Literacy project by RBI.
E-RUPI- This is a digital payment instrument for cashless payment solutions. According to research, nearly 60% of the population prefers digital payments.
India- Stack- The most important digital initiatives undertaken globally based on open APIs to promote public and private digital initiatives. Source- investindia.gov.in
How can Valuqo Capital help?
We at Valuqo Capital have been assisting companies in the Fintech segment at various stages (ranging from early-stage start-ups to later-stage start-ups). Our experience has allowed us to build a deep understanding of this industry. We identify the oversaturation and under saturation aspects of the Fintech segment. We aim to provide value to this segment. Segments such as payments facilitation have seen a surge in investments but, essential segments that usually get left behind are our core area of focus (such as P2P payments).
Our team provides top-notch services ranging from Budgeting, Feasibility studies for fundraising. This has allowed us to build a knowledge base parallel to our peers. For more details, contact us at info@valuqocapital.com.