India continues to become financially aware, at a great pace. In 2015 estimated financial literacy in the country was 15%. As of 2021 the number rose to 25%. With the explosion of digital technologies and 4G/5G expansion, the number is expected to reach 50% in the next five years. The growth and augmentation of traditional banking with NBFCs, BNPLs, InsurTech, & Fintech companies is expected to further the ambitions of this newly literate population. While Monetary Policies and Governance were pivotal in achieving this change, the sustainability of this wealth expansion and inclusion of previously untapped segments was and will be driven by technology. Whether it is open-banking or neo-banking, the fearless NBFCs or BNPLs – at the core is a potent combination of digital solutions. Technologies that are easy to use, implement, scale, and secure. Inherently, all of these digital-first solutions have social inclusiveness as a by-product, due to their scale – taking financial services to the most underserved areas in India, with ease and experience.
NBFC’s which faced liquidity challenges in 2019 and then hit by the pandemic, are already on track towards normalization & growth. They are expected to grow their loan book by 14% Year on Year base in FY23. Most of them are on the path to full scale digitalization in order to grow customer bases and reach the remotest corners of the country. On the other hand the FinTech & Payments industry, with an 87% (global avg. 64%) adoption rate, is also set to reach $150BN in valuation by 2025. Over 6,500 startups are now active in the two spaces, reforming finance, traditional insurance, microfinance, payments, & rural financing processes. At the core again is cloud-native, low latency, fluidic technology that is focused on supercharging user adoption.
Largely, this explosive growth in companies, usage, & adoption has been credited to the powerful combination of Cloud, IoT, AI & Analytics – this deep-tech trio, combined with edge computing is expected to provide the fastest fulfilment of banking processes in India than any other country in the World. In the next three years there will be an absolute and full digitalization of banking, insurance, lending, & the payment infrastructures – driven by the above trio. Customer on-boarding, experience and life cycle value management, profiling & risk aversion will be some of the key outcomes this deep-tech led transformation will drive. India’s largest banking conference, the 10th Edition of Mint | TechCircle’s Finserv Summit will unravel the complexities of this new-age digi-fin ecosystem, identify the challenges ahead, and help course correct leadership blueprints.