BENGALURU: The market size of the Indian enterprise fintech sector is projected to reach $20 billion, according to a report by venture capital firm Chiratae Ventures and finance consultancy Digital Fifth.
The market size of the enterprise fintech sector was reported to be at $2.7 billion in 2022.
The BFSI industry is rapidly transforming, driven by the need for cost reduction, scale, innovation, and agility, as stated in report. Technology investments in financial sectors are expected to grow significantly in the next decade, supported by innovations such as India Stack, Account Aggregator, ONDC, KYC, DBU regulations, and the 2023 Digital Personal Data Protection Act.
TC Meenakshisundaram, Founder and Vice-Chairman, said: “Financial sector enterprises are at a cusp of digital transformation, and with regulators’ continued support, fintechs building technology-led solutions will play a pivotal role and capture this burgeoning opportunity.”
According to the report, fintechs and embedded finance entities are collaborating with banks to enhance customer engagement, extending their digital influence into intricate areas such as business banking, including trade finance and treasury. Lenders are experimenting with innovations such as pre-approved loans, B2B BNPL, supply chain finance, and secured credit.
Sameer Singh Jaini, co-founder and CEO, The Digital Fifth, said: “The last decade witnessed a continuous influx of funds into enterprise fintechs. This, coupled with the entry of new-age players in various Enterprise segments, is shedding light on the previously untapped potential of this market.”
Source: The Hindu Business Line
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