India’s fintech ecosystem is expected to reach a scale of $70 billion in annual revenue by FY30, according to a report by Elevation Capital and McKinsey India. The report, titled “Fintech in India: The Next Decade”, also projects that the sector will create over 1 million jobs by FY30.

The report attributes the growth of India’s fintech ecosystem to a number of factors, including:

  • The growing digital economy: India is one of the fastest-growing digital economies in the world, with over 800 million internet users. This has created a large and growing market for fintech solutions.
  • The increasing penetration of smartphones: The smartphone penetration in India is expected to reach 85% by 2025. This will make it easier for people to access fintech services.
  • The favorable regulatory environment: The Indian government has been supportive of the growth of the fintech sector. This has created a conducive environment for innovation and investment.

The report also highlights the key trends that are shaping India’s fintech ecosystem. These include:

  • The rise of neobanks: Neobanks are digital-only banks that offer a variety of financial services, such as savings accounts, loans, and investment products. Neobanks are gaining popularity in India due to their convenience and affordability.
  • The growth of embedded finance: Embedded finance is the integration of financial services into non-financial products and services. This is becoming increasingly popular as it makes it easier for people to access financial services.
  • The adoption of blockchain technology: Blockchain technology is being used by fintech companies to develop new and innovative products and services. For example, blockchain is being used to create decentralized finance (DeFi) applications, which offer alternative financial services to traditional banks.

The report concludes that India’s fintech ecosystem is poised for rapid growth in the coming years. The sector is expected to create new jobs, boost economic growth, and improve financial inclusion.

Here are some of the key takeaways from the report:

  • India’s fintech ecosystem is expected to reach a scale of $70 billion in annual revenue by FY30.
  • The sector will create over 1 million jobs by FY30.
  • The growth of the fintech sector is being driven by the growing digital economy, the increasing penetration of smartphones, and the favorable regulatory environment.
  • Key trends shaping the Indian fintech ecosystem include the rise of neobanks, the growth of embedded finance, and the adoption of blockchain technology.

Here are some of the implications of the report:

  • The growth of the fintech sector will boost economic growth and improve financial inclusion.
  • The sector will create new jobs and opportunities for entrepreneurs.
  • The sector will help to make financial services more accessible and affordable for people.
  • The sector will help to reduce the reliance on cash and promote a more digital economy.