Beijing – (November 20, 2018) – As the world's sixth-largest economy by nominal GDP in 2017, India is inevitably rising to become the fastest growing major economy around the world. Jointly together with Jiayin New Financial Research Institute, the Fintech Lab, THUIFR recently released the Indian Fintech Research Report in October 2018.
The Report is the first comprehensive study on the macro environment and the development of fintech in India. The Report segmented the fintech industy in India into different areas and conducted systematic analysis on the following areas including online lending, payments, credit reporting, personal wealth management and crowdfunding.
The Macro Environment of India
India is the second most populous country around the world, with its GDP ranking the 6th, and the number of Internet users ranking the 2nd in the world. India is fully enjoying the demographic dividend, and the consumption of Indians has been upgrading evidently. Meanwhile, the Modi government have put forward the slogan "India Is Rising" and launched a series of Internet-friendly policies.
Overview
Blockchain, payments, P2P, robo advisory, financial inclusion, integrated technology-driven banking services, Internet financial security and biometrics, have been emerging in India. Many fintech companies in India have been popular in the capital market, such as Paytm, Freecharge, MobiKwik, etc.
Online Lending started, but has long way to go
There are three types of online lending in India, including P2P lending platforms, online lending platforms with emphasis on the assets, and online lending platforms with license. At present, the online lending industry in India has big potential to grow as there are only dozens of online lending platforms and only a few Indians investing in online lending. Faircent, featured in the report, is the largest P2P lending platform in India, on which, 30% of transactions are SME lending and 70% are personal lending. In terms of regulation, the Reserve Bank of India (RBI) issued regulations on online lending in 2017.
Payments boomed with fierce competition
Companies from industries such as telecommunications, e-commerce, banks, wallets, and payment banks, have been fiercely competing with each other in online payments, due to the lack of unique features of products and services. The market is calling for deep cooperation between payments and other industries. Paytm, Freecharge and MobiKwik, the three largest companies in the market were featured in the report.
Credit Reporting is emerging in India with a huge long tail market
Statistics in 2014 indicated about 90% of the Indians didn’t borrow from financial institutions, with no credit history for Indians. The Report featured the following companies. As the first credit sharing agency initiated by the Indian Ministry of Finance and RBI, TransUnion CIBIL provides products and services for both corporate and individual users. Perfios is a big data credit reporting company that mainly provides financial reports, electronic verification, API extension, corporate credit reporting and industry data analysis services. CreditMantri is an information management platform that enables users to apply for credit cards and loans, and inquire their credits for free.
Personal Wealth Management: new technologies VS tradition
Indian banks, especially a few banks in the public sector, have occupied most of the financial resources. Besides, it is also rooted in the culture that Indians prefer physical assets including real estate and gold, which sets big challenges for personal wealth management. However, technologies including AI, machine learning and blockchain are emerging and expected to be more widely applied in personal wealth management. Research shows the robo advisory market is expected to grow explosively. ManageMyFortune, featured in the report, provides robo advisory services with a wider range of portfolio for investors. Expowealth, registered with Securities and Exchange Board of India (SEBI), provides financial advisory services that invest in mutual funds.
Crowdfunding Industry is still in the early stage
While crowdfunding industry in India is still at an early stage, it has shown an exponential growth since 2014. Crowdfunding industry lacks clear regulation in India, because the primary regulator SEBI hasn’t released any clear regulations on crowdfunding yet. For example, founded in June 2010 and headquartered in Bangalore, Milaap is the first platform in India approved by RBI for global micro lending business. Founded in 2014 and headquartered in Mumbai, Impact Guru is a well-known social crowdfunding platform in India.
Conclusion
In conclusion, fintech industries such as P2P lending, payments, blockchain, robo advisory, financial inclusion, technology-driven banking services, Internet financial security and biometrics, have been emerging and have big potential to grow in India. The capital market has been keen on the development of fintech in India, as a considerable number of crowdfunding platforms in India have received huge amounts of funding.
For the full version of the Report, please go to Weiyangx.com.
