How three emerging opportunities are reshaping India’s fintech landscape
Indian financial institutions stand out as some of the best-run businesses globally. They have relatively low NPAs, comprising 3-5% of total assets, high capitalization at 18% CAR, and impressive return ratios, with return on equity (RoE) of about 15%.
India’s financial technology, or fintech, sector is experiencing rapid evolution but it exemplifies the nation’s striking contrasts. While we boast one of the highest number of bank accounts globally, the average balance per account remains notably low. Our banking system is immense, comprising 137 banks, 120,000 branches, with deposits totalling $1.35 trillion and outstanding credit of $900 billion, and it’s growing at a remarkable pace with the sector doubling in size every five to six years. However, when it comes to per capita metrics, we still reflect the developing nature of our economy.