Indian banking industry stood out for its resilience after it emerged unscathed from the global financial crisis of 2008. A lot has changed since then. The banks that were feted for their rootedness then, seem shaky today as they stand crushed under bad loans worth $1.45 billion as of March 2018.
While legacy banking has been a source of grief, India’s stride towards digitization and financial inclusion has brought a lot of cheer. Inhabiting more than 1500 startups, India today is one of the largest fin-tech hubs globally. Fintech has also emerged as one of the most funded sectors. According to VCCEdge, the data and research division of News Corp VCCircle, fin-tech companies raised more than $2 bn in funding in 2017.
Digital payments, lending, financial solutions for those living in India as well as Bharat, UPI riding on the back of UIDAI, are developments that have seen global giants such as Facebook, Google, and Amazon make a fervent pitch in the country.
A recent report by Google and Boston Consulting Group said that digital payments in India will likely grow from $50 bn in 2016 to $500 bn in 2020. This frenzied growth is bound to drive action in larger finserv segments such as insurance, wealth management, lending and even banking.
The emergence of payment banks and the steady progress made by small finance banks are other developments taking shape on the periphery that have the potential to disrupt the sector in the coming years.
All these trends, the opportunities and challenges they throw will be discussed at News Corp VCCircle’s forthcoming FinServ 2018 on 28th August in Four Seasons Hotel, Mumbai.
Disclaimer: The details about this event have been reproduced from the VCC Events website for the sole purpose of information only. No modifications have been made by the editorial team.