Fintech Market in India 2020

India is one of the fastest-growing fintech markets in the world. As of March 2020, India, alongside China, accounted for the highest fintech adoption rate (87%), out of all the emerging markets in the world. On the other hand, the global average adoption rate stood at 64%. With the burgeoning numbe...

43922 | Banking, Financial and Insurance Services (BFSI)

Non-life Insurance Market in India 2019

Amidst the ongoing economic slowdown across India, the insurance sector is expected to witness an expansion mainly due to the proposed increase in foreign investment limit on insurance intermediaries from 49% to 100%. The non-life insurance market is expected to reach INR 3,662.94 Bn by FY 2024, exp...

43739 | Banking, Financial and Insurance Services (BFSI)

Mobile Banking Market in India 2019

In India, mobile banking activities have surged over the years, with an increasing number of consumers adopting digital tools to monitor their finances. Mobile banking facilities are provided across the country by ~96,068 scheduled commercial banks (SCBs), through wireless application protocol (WAP)...

43800 | Banking, Financial and Insurance Services (BFSI)

Life Insurance Market in India 2019

The Indian financial services sector is a highly volatile sector, influenced by fiscal and monetary policies, government regulations, trade rules, tax changes, and technology changes. The insurance industry in India is regulated by the Insurance Regulatory and Development Authority of India (IRDAI),...

43770 | Banking, Financial and Insurance Services (BFSI)

E-payment Solutions Market in India 2020

As online payment rose in popularity, paper-based clearing methods experienced a sharp blow within the overall retail payments sector (both in terms of value and volume) in FY 2019. The e-payment solutions market in India is expected to expand at a compound annual growth rate (CAGR) of ~21.74% durin...

43831 | Banking, Financial and Insurance Services (BFSI)

Wealth Management Market in India 2019

The wealth management market, an integral part of the financial services sector in India, was valued at INR 113.32 Tn in 2018 and is expected to reach INR 338.67 Tn by 2024, expanding at a compound annual growth rate (CAGR) of ~20.02% during the 2019-2024 period. For the past few years, India has be...

43678 | Banking, Financial and Insurance Services (BFSI)

Retail Banking Industry in India 2019

The retail banking sector, currently comprises a network of ~96,068 branches of public sector, private sector, foreign, regional, rural, and cooperative banks (urban and rural). During the FY 2014-FY 2019 period, deposit at SCBs expanded at a compound annual growth rate (CAGR) of ~10.39% to reach I...

43770 | Banking, Financial and Insurance Services (BFSI)

Mutual Funds Market in India 2019

In terms of assets under management (AUM), the mutual fund industry in India has been experiencing steady growth over the past few years. During the FY 2016-FY 2019 period, the mutual fund industry AUM increased at a rate of ~22.94% and is expected to reach INR ~918.54 Tn by FY 2024. This growth can...

43709 | Banking, Financial and Insurance Services (BFSI)

Global Fintech Market (2018-2023)

The use of mobile devices and technology-based solutions is propelling the demand for financial and banking solutions, which can be accessed through personal devices. Banks and firms are investing heavily in technology-based solutions, competing with contemporary fintech companies. This is the key g...

43597 | Banking, Financial and Insurance Services (BFSI)

Non-Life Insurance Market in India (2018-2023)

The non-life insurance market in India has been witnessing growth, lately, owing to the introduction of innovative products covering miscellaneous risks associated with the current market scenario. As of FY 2017, out of the 29 non-life insurance companies operating in India, 23 companies were operat...

43581 | Banking, Financial and Insurance Services (BFSI)

India is one of the fastest-growing fintech markets in the world. As of March 2020, India, alongside China, accounted for the highest fintech adoption rate (87%), out of all the emerging markets in the world. On the other hand, the global average adoption rate stood at 64%. With the burgeoning number of start-ups, the fintech industry in India is attracting increased investments. Initiatives undertaken by the government to drive digitization like demonetization, Jan Dhan Yojana, Aadhaar and Unified Payment Interface (UPI) have further contributed to the growth of the industry. Market insights: The fintech market in India was valued at ~INR 1,920.16 Bn in 2019 and is expected to reach ~INR 6,207.41 Bn by 2025, expanding at a compound annual growth rate (CAGR) of ~22.70% during the 2020-2025 period. Increased adoption of the internet and improved digital infrastructure are driving the fintech market in India. However, lack of consumers’ trust on digital modes of payment, and rising threat of cyber and data security are impeding market growth. Further, the industry is witnessing increased application of artificial intelligence (AI) and Big Data for enhancing personalized offerings. New business models like Neobanks are expected to revolutionize the Indian fintech market. Segment insights: Payments, lending, insurtech, wealthtech and banktech are the key operative segments within the fintech market. The payment segment comprises M-wallets, PPIs, merchant payments, PoS services, international remittance and trading in crypto currencies. The lending segment includes peer-to-peer lending, crowd funding, loans, online lenders, on-book lending by NBFCs and credit scoring platforms. Insurtech is a niche segment in the Indian fintech ecosystem consisting of insurance aggregators, IoT, wearable and kinematics. Wealthtech includes robo-advisors, discount brokers and online financial advisors. The principal function of the banktech segment is to utilize data points like financial transactions and spending patterns to create risk profiles of consumers. In 2018 and 2019, the payments segment received the highest amount of venture capital investments, followed by the lending and insurtech segments. Wealthtech and banktech are the emerging segments of the industry. Impact of COVID-19: As the discretionary spending in the industry has gone down considerably, the number of digital transactions has declined. This has severely hampered cash flow for leading businesses in the country. However, the industry witnessed a ~42% rise in the use of digital payment modes. But purchasing only essential products would not be enough to drive uptake of digital transaction in the Indian fintech ecosystem. Healthcare, bill payments, grocery and food are witnessing rapid digitization, while the entertainment, fashion, travel and tourism industries are at a standstill, thereby reducing transaction volumes in the country and severely affecting the Indian fintech industry. Competition analysis: The fintech market in India is highly competitive with incredible growth potential; however, stringent regulatory norms tend to act as significant entry barriers for new players entering the Indian fintech space. The country is growing into a hub for fintech start-ups, and global investors are actively investing in prospective Indian fintech start-ups. In terms of investment, PayTM, Cred, Acko, InCred Finance and BharatPe emerged as the top five fintech players in 2019. Companies covered: • ET Money • ezetap • Freecharge Payment Technologies Private Limited • One Mobikwik System Private Limited • Mswipe Technologies Private Limited • One97 Communications Limited • PhonePe Private Limited • Pine Labs Private Limited • PolicyBazar.com • PayU Payments Private Limited ...

43922

43739

In India, mobile banking activities have surged over the years, with an increasing number of consumers adopting digital tools to monitor their finances. Mobile banking facilities are provided across the country by ~96,068 scheduled commercial banks (SCBs), through wireless application protocol (WAP), short message systems (SMS) and unstructured supplementary service data (USSD). In recent years, several government initiatives and the launch of payment systems like unified payment interface (UPI) and Bharat interface for money (BHIM) have resulted in increased use of mobile banking. In FY 2019, INR 29,584.07 Bn amount funds were transferred, using mobile banking, thus increasing at a compound annual growth rate (CAGR) of ~131.21% from INR 1,035.30 Bn in FY 2015. In FY 2019, SCBs recorded the highest growth in mobile banking transactions (~43.17%), based on value, between February 2019 and March 2019. Based on volume, SCBs recorded highest growth (~24.66%) between August 2018 and September 2018 in mobile banking. Major players currently operating in the Indian mobile banking market include Axis Bank Limited, HDFC Bank Limited, Kotak Mahindra Bank Limited and State Bank of India. Key growth drivers of the market • The demonetization of the 500 and 1000 currency notes in November 2016 was aimed at transforming India into a cashless economy. Through initiatives like Digital India, the government plans to empower the country technologically, by improving online infrastructure and internet connectivity. Services like banking and utility bill payments are being made accessible to Indians through online platforms, both in urban and rural areas. As a result, a large part of the Indian population now has turned to mobile banking for fund transfer. • With the introduction of mobile banking channels, customers can avail banking services any time of the day. The installation of a single app makes the various types of banking facilities easily accessible. The instant responses obtained from the mobile banking apps like emPower (Allahabad Bank), Axis Mobile (Axis Bank), Baroda mPassbook (Bank of Baroda), and BOI mobile (Bank of India), improve customers’ experiences. Owing to such benefits, customers’ preference has shifted in favour of mobile banking from branch-based banking. Key deterrents to the growth of the market As much as the increased adoption of wireless Internet and mobile data connection has driven mobile banking facilities, it has also led to a rise in fraudulent activities in both the public sector and private banks across the country. Since fund transfer has become easy through mobile banking platforms, the young generation nowadays use application-based mobile banking channels for making miscellaneous digital payments. In the process, chances of data breach and fraudulent activities are high due to successful interoperability. Increased cases of cybercrimes in India have developed fear among the existing, as well as the potential mobile banking app users to adopt digital transaction processes, thus impeding the growth of the mobile banking market in India. Companies covered • Allahabad Bank Limited • Axis Bank Limited • Bank of Baroda Limited • Bank of India Limited • Housing Development Finance Corporation (HDFC) Bank Limited • Industrial Credit and Investment Corporation of India (ICICI) Bank Limited • Industrial Development Bank of India (IDBI) Limited • Kotak Mahindra Bank Limited • Punjab National Bank Limited • State Bank of India Limited ...

43800

43770

As online payment rose in popularity, paper-based clearing methods experienced a sharp blow within the overall retail payments sector (both in terms of value and volume) in FY 2019. The e-payment solutions market in India is expected to expand at a compound annual growth rate (CAGR) of ~21.74% during the FY 2020-FY 2024 period, from its FY 2019 value of INR 1,638.49 Tn to reach INR 4,323.63 Bn by FY 2024. Based on volume, the market would expand at a CAGR of ~60.65% during the same period (FY 2020-FY 2024). Bank cards (debit cards, credit cards), e-wallets and UPI are some of the common modes of online payment prevalent in the country. Development in fintech, e-commerce and digital banking is significantly driving the growth of e-payments in the country. Integration of payment services in popular non-banking mobile applications such as WhatsApp, Apple Pay, Amazon Pay and Ola Money, among others, is also fueling e-payments, especially among the millennial population in India. Major players currently operating in the Indian e-payment solutions market include scheduled commercial banks like Axis Bank Limited, HDFC Bank Limited, ICICI Bank Limited and State Bank of India. Apart from banks, e-payment solution providers like Infibeam Avenues Limited, Airtel Payments Bank Limited, Mswipe Technologies Private Limited, Google LLC, and PayPal Payments Private Limited, also operate in the market. Segment-wise market overview Out of the different types of e-payment solutions, real-time gross settlement (RTGS) held the largest market share, followed by retail electronic clearing and bank cards, during the FY 2017-FY 2019 period, based on value. However, based on volume, bank cards held the largest market share during the same period. The share of national electronic funds transfer (NEFT), based on value, declined from ~90.72% in 2017 to ~85.20% in 2019, while it went down from ~38.41% in 2017 to ~18.60% in 2019, based on volume. On the other hand, share based on value for immediate payment service (IMPS) shot up from ~3.11% in 2017 to ~5.94% in 2019, and from ~12% in 2017 to ~14.06% in 2019, based on volume. Based on value, the share of credit cards decreased from ~44.25% in 2017 to ~42.80% in 2019, while on the basis of volume, the share dropped to ~16.35% in 2019 from ~19.95% in 2017. In the case of debit cards, shares fell from ~44.45% in 2017 to ~42.10% in 2019, based on value, and from ~44.02% in 2017 to ~40.94% in 2019, based on volume. IMPS and UPI are mobile based e-payment methods, which makes transaction easy and hassle free for customers. On the other hand, in order to transfer fund through both NEFT and NACH (national automated clearing house), customers are required to visit their respective bank branches. Also, transaction through NEFT and NACH require manual intervention, which in turn limits the process within the working hours of the bank. Mobile-based e-payment solutions have gained widespread acceptance since they allow smooth transaction. The popularity of branch-based solutions like NEFT and NACH has sank, in recent years. Key growth driver of the market Of late, the e-commerce market in India has been experiencing rapid growth, owing to the participation of companies offering niche products, presence of a large Internet user base, launch of 4G and increase in the purchasing power of consumers. E-commerce giants like Amazon, Flipkart and Paytm Mall often provide cashback and discount offers for online transactions, which in turn attract young customers towards e-payment systems. Key deterrent to the growth of the market Despite multiple efforts of the government towards making the Digital India campaign successful, cash continues to be the most popular mode of transaction in the country. This is impeding the adoption of e-payment services across the country. Companies covered • Axis Bank Limited • HDFC Bank Limited • ICICI Bank Limited • Infibeam Avenues Limited • State Bank of India • Airtel Payments Bank Limited • Mswipe Technologies Private Limited • One97 Communications Limited • One MobiKwik Systems Private Limited • Google LLC • PayPal Payments Private Limited ...

43831

The wealth management market, an integral part of the financial services sector in India, was valued at INR 113.32 Tn in 2018 and is expected to reach INR 338.67 Tn by 2024, expanding at a compound annual growth rate (CAGR) of ~20.02% during the 2019-2024 period. For the past few years, India has been witnessing the emergence of family office offerings, along with estate planning services. Indians have gradually become tolerant of capital market investment instruments than traditional investment instrument of gold and real estate. The Indian millionaire club incorporated 7,300 people in mid-2018, driving up the total number of millionaires to 3,43,000 in 2018. Major players, who are currently operating in the Indian wealth management market include Alpha Capital, Bajaj Capital Limited, Edelweiss Asset Management Limited, Karvy Private Wealth and Sanctum Wealth Management Limited. Key growth drivers of the market • India is expected to be one of the powerful economies of the world in the next 10-15 years, owing to its strong bilateral ties. With the growth of the economy, income opportunities have increased, thereby giving rise to people’s disposable income. As a result, an attractive business environment has developed for wealth management firms. • With robust technological advancements in the field of financial services in the form of robo-advisors, artificial intelligence and the like, wealth management companies are now capable of providing highly personalized services that can fulfil the individual needs of investors. This in turn is giving rise to customer satisfaction and high investments in the field of financial services in India. Key deterrents to the growth of the market With increased usage of technology, risk of data breach and cyber fraud has increased. Between July 2018 and April 2019, data breaches cost Indian organizations INR 128 Mn. Such cases of high-profile financial scams, unethical practices by advisors with short-term objectives, and lack of effective investor protection regulations have contributed to insecurities among investors. This, in turn, is impeding the growth of wealth management companies across India. Companies covered • Alpha Capital • Anand Rathi Wealth Services Limited • Bajaj Capital Limited • Centrum Wealth Management Limited • Edelweiss Asset Management Limited • IIFL Wealth Management Limited • Karvy Private Wealth • Motilal Oswal Wealth Management Limited • Sanctum Wealth Management Limited • Waterfield Advisors Private Limited ...

43678

The retail banking sector, currently comprises a network of ~96,068 branches of public sector, private sector, foreign, regional, rural, and cooperative banks (urban and rural). During the FY 2014-FY 2019 period, deposit at SCBs expanded at a compound annual growth rate (CAGR) of ~10.39% to reach INR 1,30,430.12 Bn in FY 2019 from its FY 2014 value of INR 79,556.90 Bn. Various government initiatives like increasing the number of banks’ public service units in rural areas, the Pradhan Mantri Jan Dhan Yojana program, free credit and debit cards with low transaction limits and promotion of technology-based banking systems are driving the growth of the retail banking sector of India. Major players operating in the Indian retail banking industry include Yes Bank Limited, Axis Bank Limited, Bandhan Bank Limited, State Bank of India Limited and HDFC Bank Limited. Market segment insights As of FY 2018, in terms of deposit, public sector banks held the highest market share (~70.06%), followed by private sector banks. In FY 2018, SCBs opened around 1,594 new branches in tier I cities across India, which accounts for ~40.37% of the overall new branches opened during the year. During the same period, public sector banks had around 82,730 on-site ATMs and about 63,234 off-site ATMs across India. Among these, most public sector bank ATMs are in the semi-urban regions. Key growth drivers of the market In order to increase the penetration of services across India, SCBs have introduced facilities like opening a zero-balance savings account for the low-income population group in rural areas. Government-led, bank-based pension and insurance schemes like Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojana have also propelled the growth of the retail banking industry in India. Owing such customer-centric facilities, the penetration level of the banking sector in India had reached ~80% in FY 2018. The introduction of internet-based banking facilities has made transactions easier, thereby increasing the account-to-account transaction volume across the country. Key deterrents to the growth of the market Apart from banking, the popularity of internet-based banking has made it easy for hackers to engage in fraudulent activities. Crimes related to credit card fraud, spamming, spoofing, e-money laundering, ATM fraud, phishing, identity theft and credit through unauthorized cheque increased in India in FY 2019, as compared to that of FY 2018. This, in turn, has led to customers’ dissatisfaction and loss of trust towards web-based banking. Companies covered • Allahabad Bank Limited • Axis Bank Limited • Bandhan Bank Limited • Bank of Baroda Limited • HDFC Bank Limited • ICICI Bank Limited • Kotak Mahindra Bank Limited • RBL Bank Limited • State Bank of India Limited • Yes Bank Limited ...

43770

In terms of assets under management (AUM), the mutual fund industry in India has been experiencing steady growth over the past few years. During the FY 2016-FY 2019 period, the mutual fund industry AUM increased at a rate of ~22.94% and is expected to reach INR ~918.54 Tn by FY 2024. This growth can be attributed to the growing importance of the ‘savings culture’ among people and inclination towards systematic investment plan (SIP) schemes. Both individuals and institutional investors are expected to contribute equally to the growth of the market during the forecast period. Major players operating in the Indian mutual fund industry include HDFC Asset Management Company Limited, Reliance Nippon Life Asset Management Limited, Aditya Birla Sun Life AMC Limited, Axis Asset Management Company Limited and DSP Investment Managers Private Limited. Market segment insights As of June 2019, retail investors held the highest market share (~91.56%) in the overall mutual fund industry, in terms of the number of accounts. Retail investors also hold the maximum number of accounts across different types of funds, equity-oriented schemes being the most popular. Among the different kinds of mutual fund schemes, equity-oriented plans held a share of ~72.4% in the overall market in terms of number of accounts, as recorded in June 2019. Key growth drivers of the market • The proclivity to save money among people in the country is fueling the growth of the mutual fund industry in India. During the early-2000s, Indians used to make investments in physical assets and financial assets at the ratio of 3:2, which became 1:1 in FY 2019. This led to an inflow of INR ~3 Tn in the Indian financial sector by FY 2019. • A rise in preference towards SIP schemes has recently been observed among investors in the country. The total contribution of SIP investments was INR ~679.1 Bn in FY 2018, which increased to INR ~926.93 Bn in FY 2019. A rise in SIP investments in the coming years is expected to drive growth in the Indian mutual fund industry. Key deterrents to the growth of the market Though, of late, the population has been expressing interest in mutual funds, lack of efficiency of asset management companies presents a challenge for the penetration of mutual funds across India. Companies often tend to limit their expenses for the development and maintenance of distribution channels only in tier 1 cities. Companies covered • HDFC Asset Management Company Limited • Reliance Nippon Life Asset Management Limited • Aditya Birla Sun Life AMC Limited • Axis Asset Management Company Limited • DSP Investment Managers Private Limited • Franklin Templeton Asset Management (India) Private Limited • ICICI Prudential Asset Management Company Limited • Kotak Mahindra Asset Management Company Limited • SBI Funds Management Private Limited • UTI Asset Management Company Limited ...

43709

The use of mobile devices and technology-based solutions is propelling the demand for financial and banking solutions, which can be accessed through personal devices. Banks and firms are investing heavily in technology-based solutions, competing with contemporary fintech companies. This is the key growth driver for the global fintech market, which will pin its worth at approximately USD 305.7 Bn by 2023, expanding at a CAGR of 22.17% during the 2018-2023 period. Service segment insights The various services provided in the fintech sector are regtech, payment/billing, insurtech, money transfer/remittance, mortgage/real estate, and others (lending, capital market, and wealth management). Among these segments, the payment/billing services will be the major growth driver in the global market, leading to a revenue generation of USD 207.11 Bn by 2023. This growth can be attributed to contactless cards and the emergence of retail-focused fintech companies looking to expand the use of this functionality by taking it to every corner of commerce. Popularity of payment apps like GoUrl, Cayan, Stripe, and Amazon Pay, among customers and retailers, will further drive the market. Regtech is expected to expand at a CAGR of 22.05%, followed by payment/billing. This is mainly due to the implementation of new regulations pertaining to the fintech sector. Technology segment insights The major technologies involved in the fintech sector are artificial intelligence (AI), Blockchain, cryptography, biometrics and identity management, cyber-security, and robotic process automation (RPA). Major growth will be witnessed in the areas of AI and Blockchain, attracting major investments during the forecast period (2018-2023). AI interfaces and chatbots have redefined customer services, and its growing popularity will enable the AI-oriented fintech market to expand at a CAGR of 21.72% during the 2018-2023 period. Blockchain-based fintech companies are also gaining traction, having received significant investments in 2018. Regional insights North America is the leading contributor to the global fintech market and is expected to reach USD 80.8 Bn by 2023. However, the pace of growth in the Asia-Pacific (APAC) region is anticipated to be the highest, expanding at a CAGR of 43.34% during the 2018-2023 period. The growth can be attributed to an increasing number of start-ups catering to most of the financial applications, including banking, insurance, and wealth management. In the APAC fintech market, China, Japan, South Korea, Australia, and India are the key contributing countries. Latin America (LATAM), on the other hand, is slowly emerging as one of the prominent regions in terms of fintech development, majorly driven by initiatives being undertaken in Mexico and Brazil. Companies covered • Robinhood • Ant Financial • Paytm • Shanghai Lujiazui International Financial Asset Exchange • Oscar Insurance Corporation • Credit Karma • Kabbage • Atom Bank • Onfido • Uipath ...

43597

43581

LATEST REPORTS

PRESS RELEASES

Use Code

SDMR20

Purchase any report

AVAIL FLAT DISCOUNT