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Financial technology software services market is expected to increase to $14 billion in next three years given the proliferation of digital payments in the country, NITI Aayog CEO Amitabh Kant said today.
"Currently, more than 600 startups are in the field of lending, payments, insurance and trading and the current financial technology software services market stands at $8 billion and this is expected to grow to about $14 billion by 2020," Kant said.
Reeling out growth numbers for digital payment following demonetisation, he said the volume of digital payment has increased by 55% in 2016-17 as compared to previous fiscal. The average CAGR was 28% in the previous 5 years, he added.
Debit card usage has gone up by 104%, pre-paid instruments have seen a jump of 163%, POS installation has gone up by 83%, Kant said at a CII event here.
Noting that cost of cash is very high, he said RBI spends Rs 21,000 crore in currency circulation per annum.
"Around half of that just in ATM operations. So, my personal view is that Indian rural market is just waiting to become the prime customer of the financial technology revolution," he said.
"India is in the top of ten financial technology markets in the world. Current financial technology offerings are mainly accessible to elite. Therefore, there is a need to reorient innovative potential to solve problem of rural and unbanked India," he added.
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