Authored by Mr, Musharraf Hussain, the COO of Ezeepay
As a result of COVID-19’s increased digital adoption, India is now at the forefront of the financial revolution. According to the MoS, Finance, the Indian fintech business will reportedly generate 150 to 160 billion USD by 2025. The adoption rate of fintech in India is 87 per cent, which is significantly higher than the global average of 64 per cent, even though the sector has not been around for more than ten years.

According to the most current World Economic Outlook study from the International Monetary Fund, India will have a 5 trillion USD GDP by 2026–2027. It is due to the expanding digital infrastructure.
Given the favourable climate that the government and the Indian economy have established, fintech has carved out a sizeable market share for itself. It has upended the Banking, Finance, Securities & Insurance (BFSI) sector, clearing the way for India’s $5 trillion economy. Additionally, the number of fintech unicorns and their values are on the rise in the nation.
Fintech surpassed the traditional system
The financial inclusion movement taking place in the nation has been fueled by innovation by FinTechs. Fintech succeeded where traditional banks failed in reaching the unbanked and underbanked segments of the Indian population. Strong, flexible, and multilingual mobile banking interfaces facilitated financial inclusion and transparency, resulting in a massive increase in the consumer base and accelerated economic growth.
In 2021, the funding for fintech saw a 3X increase. An organic and cooperative environment fostered this expansion, which also received backing from significant government programmes. As a result, in January 2022, the RBI also established an internal fintech section. The fintech department was established to encourage the orderly development of digital lending, recognise opportunities and difficulties, promote constructive innovation and incubation, and control the fintech market. By 2030, the prospective India FinTech market is anticipated to generate $200 billion in revenue.
Sandbox framework
The government’s 2019 establishment of the regulatory sandbox framework assisted in reducing the risks during the crash that followed the pandemic. It protected investments in companies that handle contactless payments, mobile banking, and retail payments. Additionally, it sped up United Payments Interface (UPI) usage. The Reserve Bank of India (RBI) has proposed enabling credit cards to be linked to UPI forums due to the surge in the use of UPI, internet-based banking, and mobile banking.
Innovative solutions for Rural India
Rural fintech companies have revolutionised Indians’ way of life and means of subsistence. To address the key problems faced by rural customers, they have made many adjustments to their digital product offerings to promote awareness and uptake.
According to studies by the Internet and Mobile Association of India, the number of internet users in rural India is growing more than three times as quickly as those in metropolitan areas (IAMAI). Due to technologically driven solutions, the adoption of broadband internet, and rural consumers’ readiness for digital financial services, the situation has substantially improved. Rural areas now clearly use more smartphones and the internet. Thanks to the accessible mobile broadband connections offered by Indian telecom firms, rural India has made progress as well. So, a significant factor in why FinTech companies are offering cutting-edge and approachable online platforms to assist banking is the current smartphone user base in rural areas.