Comparative Guides

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4. Results: Answers
Trends and predictions
How would you describe the current fintech landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

Answer ... The Indian fintech sector has grown exponentially in the last few years and is attracting significant foreign investment into India. The largest global technology players have now established themselves or are setting up in the fintech space. Anticipated developments include the following:

  • Growth of Unified Payment Interface (UPI): The UPI platform has grown exponentially over the last year. In terms of scale, it is among the largest digital payment experiments in the world and thus far it has proved quite successful. It is expected that the UPI experience will eventually be exported to other countries.
  • Alternative lending: There has been significant growth in the alternative lending space. Powered by artificial intelligence and data analytics tools, alternative lending companies have acquired a sizeable chunk of the retail and small and medium-sized enterprise loan market, and have targeted borrowers who are data rich, but collateral poor. We expect this growth to continue.
  • Alternate fintech: Other allied verticals of fintech – such as healthtech, proptech and agritech – are expected to grow rapidly.
  • Neo-banks: A number of neo-banks have emerged in India this year. These are expected to grow rapidly both in number and in activity.
  • Regulatory sandbox: The first cohorts in the sandboxes established by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India are expected to commence soon. This should hopefully open up new opportunities for cooperation between businesses and regulators.
  • Payment gateway regulations: The RBI is expected to announce regulations to govern payment intermediaries and gateways. These businesses have previously remained outside the RBI’s regulatory ambit.

For more information about this answer please contact: Probir Roy Chowdhury from J. Sagar Associates