Report: Cashless ecosystem spells big bucks for fintech startups in India, to reach $2.4 billion by 2020
Supported by the growth in e-commerce, increasing consumer expectations and spends and an unprecedented smartphone penetration, Fintech startups are set to rake in the moolah. A joint report by KPMG and NASSCOM titled ‘Fintech in India: A global growth story’ predicts the market to double its growth from $1.2 billion to $2.4 billion in the next four years.
The report argues that a robust fintech collaborative ecosystem – with startups engaging in external partnerships withfinancial institutions, universities and research institutions, venture capitalists, technology experts, government agencies – will be the key platform for the forecasted growth.
According to KPMG India, Partner and Head, Financial Services, Naresh Makhijani, credits initiatives taken by the government for the growth, “The prima-facie catalyst for the success of the fintech industry in India is the government and the multi-pronged approach it has taken towards enabling higher penetration of these digital financial platforms for institutions and the public is commendable. The roadblocks of low technological and digital infrastructure coupled with the lack of authentic consumer information can be overcome through continuing government incentives, regulatory mandates and a robust business environment,” said Makhijani in a statement.