scorecardresearchFintech market likely to touch $1 trillion in AUM by 2030: Report

Fintech market likely to touch $1 trillion in AUM by 2030: Report

Updated: 10 Aug 2022, 01:25 PM IST
TL;DR.

Home to 21 fintech unicorns (out of 2100+ fintechs), India is now being recognised as one of the largest fintech ecosystems.

Much of the growth in the fintech sector will be driven in the digital lending market, stated the report. 

Much of the growth in the fintech sector will be driven in the digital lending market, stated the report. 

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.

First Published: 10 Aug 2022, 01:25 PM IST