Answer ... The Indian financial services ecosystem is quite different from its counterpart in more mature financial markets. The need for financial inclusion has spurred the growth of financial service providers and allied services. As a consequence, while penetration of financial services is still quite low, adoption rates are much higher and the available opportunities are quite attractive. The fact that Indian data access costs are among the lowest in the world helps in this regard. Fintech companies that wish to enter the Indian market must adapt their business and products to suit this ecosystem.

The fact that there are multiple regulators and nascent legislation may make it more difficult for foreign players to navigate the Indian fintech landscape. They must also be aware that India fintech has reached a pivotal moment, with a host of new regulations expected. It should not be assumed that today’s regulatory landscape will remain the same a year from now.