India is amongst the fastest growing fintech markets globally; it is the global leader for FinTech adoption, and RBSA advisors claim it is the third biggest FinTech ecosystem in the world.
Revolut, the UK’s biggest FinTech company, is not shying away from the challenge of establishing a foothold in the Indian market. Instead, it has hired 300 staff for its Indian hub and is investing over $25 million over the next five years, with the aim to launch its app there by 2022.
The Indian incentive is obvious; it has the second-largest unbanked population in the world, a very low penetration of insurance, suboptimal portfolio allocations, a huge millennial base, and a big Government-led push towards financial inclusion and digitalisation.
By 2030, India will see an additional 140 million middle-income and 21 million high-income households, driving the demand and growth in the fintech space.
“One of the most enticing markets for any British business, but particularly a digital product like FinTech, must be India. It is one the world’s largest financial hubs, a key investor into the UK, and a market with over a billion potential customers. A Free Trade Agreement, which the UK and Indian Prime Ministers are hopefully discussing as we speak, will help to create an investment corridor between the two countries, which will benefit startups and FinTech firms on either side of the Silk Road, as well as savvy investors looking for symbiotic relationships with ambitious firms.”
According to Mr. Gala, UK fintech is thriving, and the country’s businesses are looking to expand – often into India. With the potential market proving so lucrative, UK fintechs will be looking to maximise their chances in India and beyond. However, firms face fierce competition from highly successful domestic companies, and many will require venture capitalists or incubators to help them grow and expand into the country.
Utilising both their local expertise as well as their international insight will help these ambitious foreign firms access the 1.3 billion consumers that are growing ever more digitally connected.