India is fast emerging as a financial technology hotspot, rubbing shoulders with the likes of US, UK, Singapore, and Brazil, says a new global study by the World Economic Forum.
Released at the Annual Meeting of New Champions in China’s Tianjin, the study, titled, 'Future of Global Fintech: From Rapid Expansion to Sustainable Growth', also predicted stable growth of the fintech sector as it records consistent profitability and inclusion.
Each of the countries included in the list headquarters at least 10 fintech firms, which further showcases a sector that is booming. The other countries include the United Arab Emirates, Mexico, Indonesia, Germany, and Brazil, said the WEF report, with a special mention of the sector’s growth reaching traditionally underserved groups.
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The global survey had taken into account as many as 240 fintech firms, indicating stabilised customer growth at 37 per cent. Financial performance of the firms showed strong growth at 40 per cent and profit growth at 39 per cent.
The survey was carried out in collaboration with the Cambridge Centre for Alternative Finance (CCAF), at Cambridge Judge Business School, University of Cambridge.
The report said that emerging markets and developing countries (EMDEs) represented micro, small and medium enterprises (MSMEs), low-income individuals and women in 57 per cent, 47 per cent, and 41 per cent portions of fintechs’ customer base respectively.
It noted the improvement in performance of the firms that adopted AI, with 83 per cent fintechs reporting improved customer experience and approximately three-quarter respondents noting higher profitability and reduced costs.
The only major challenge to the growth of the fintechs were macroeconomic conditions, although only 18 per cent of respondents viewed them as a hindrance.
Concerns about the funding environment have also eased significantly, with only 12 per cent citing it as a hindrance, compared to 40 per cent last year.
The WEF suggested expanding access to capital and better regulatory efficiency for sustainable fintech growth.
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