Biznextnews : ChirataeVentures, in collaboration with The Digital Fifth, has released a comprehensive report titled ‘Unlocking Indian Enterprise Fintech Market.’ As per the 2024 FinTech Sector report, Enterprise FinTechs are poised to expand, with projections estimating a market size of approximately USD 20 billion by 2030. This report focuses on Enterprise FinTechs that play a pivotal role in streamlining product, sales and service delivery as well as enhancing efficiency within the BFSI segment in six essential sectors: BankingTech, LendingTech, PayTech, RegTech, InsurTech and WealthTech.
Sudhir Sethi, Founder and Chairman, Chiratae Ventureson the launch of the report, shared, “Chiratae projects the Enterprise FinTech industry to be over $20 bn opportunity by 2030, and with FinTech being a focus area, we are keen to work with founders transforming India’s Financial Services. Chiratae has a successful history of investing in innovative category builders in FinTech, such as Fibe in Consumer Credit, Vayana Network in Supply Chain Financing, GetVantage in Revenue Based Financing, PolicyBazaar in Insurance distribution, to name a few. With our cumulative learnings and experiences with the traditional Financial Services as well as FinTechs, we are excited to share our insights via this Enterprise FinTech report.”
The Enterprise FinTech Opportunity
The BFSI industry is undergoing a rapid transformation amidst demand for lower costs, scale, innovation, and agility. Instead of banks viewing technology as a cost centre, the thought process has started to realign, and it is now being seen as a driver to manage profit and loss as well as reduce the cost-to-income ratio. Investment in technology across financial segments is expected to witness high growth over the coming decade.The backbone of this digital innovation is revolutionary with public infrastructure like the India Stack, Account Aggregator, ONDC, KYC and DBU regulations. The recent Digital Personal Data Protection Act (DPDP) of 2023 will also push financial institutions and their partners to reorient their architecture and business for better data governance.
This digitisation has led to the growth of Embedded Finance platforms and increased investments in API-enabled infrastructure. This shift towards Embedded Finance providers is creating an opportunity for Anything As A Service i.e. XaaS. Banking (BaaS), Lending (LaaS) and Payments (PaaS), have already emerged as key areas of investment for VCs.Digitisation is underway in the retail business for Saving Accounts, Credit Cards and Personal Loans and has just begun for the MSME and Corporate segments.According to the report, banks and NBFCs will evolve to become fully digital for the Retail and MSME segments in the next 10 years.
TC Meenakshisundaram, Founder and Vice-Chairman added, “Financial Sector Enterprises are at a cusp of digital transformation, and with regulators’ continued support, FinTechs building technology-led solutions will play a pivotal role and capture this burgeoning opportunity. We expect Chiratae to play an active part in the Enterprise FinTech space in the coming four to five years.”