The fintech sector of India, world’s third largest, is expected to grow tenfold this decade to touch assets under management (AUM) amounting to $1 trillion between lending, asset management and insurance by 2030, states a report by Chiratae Ventures and EY India, Business Line reported.
The total AUM of Indian fintech market (excluding payments) was about $102 billion, as of 2021. Payments landscape alone is expected to touch transaction volumes of $100 trillion by 2030.
This report —$1 trillion India Fintech Opportunity — highlighted that fintech sector revenues (including those from payments space) is estimated to grow to $200 billion by 2030 from about $18 billion in 2021.
Much of the growth in the fintech sector will be driven in the digital lending market, which is expected to grow to $515 billion in book size by 2030, from a level of $38 billion in 2021, the report noted.
Digital lending revenues have been projected in the report to grow to $105 billion by 2030 from $8 billion in 2021. Digital lending growth will be driven on the back of customised segment-specific solution, according to the report. In 2021, digital lending clocked more than $1 billion in investments.
Home to 21 fintech unicorns (out of 2100+ fintechs), India is now being recognised as one of the largest fintech ecosystems.
The report said that co-lending is likely to evolve as a marketplace model that assists lending partners in mitigating their risk exposure.