India's fintech market to reach $1 trillion by 2030: Chief Economic Advisor

India's fintech market is expected to reach $1 trillion by 2030, from $31 billion in 2021, Chief Economic Advisor Dr V. Anantha Nageswaran said here on Tuesday.

Speaking at the 'Global Fintech Fest 2022' (GFF 2022), he noted that a major shift towards a more equitable distribution of investment across sectors including insurtech and wealthech, etc, has started taking place.

"We are talking about bridging the digital divide and the economic divide. Therefore the focus now is on how the combination of technology and finance is enabling access to finance and access to opportunities," Nageswaran told the gathering.

The next wave in the fintech sector could be the cash flow lending to MSMEs using Account Aggregator, UPI and Open Credit Enablement Network (OCEN).

"The lending potential of $3 trillion next year will be based on GST invoices and bank statements made available on Account Aggregator and banks adopting OCEN," said Nageswaran.

About the barriers and drivers to grow digital payments for the next half a billion users, Praveena Rai, Chief Operating Officer, National Payments Corporation of India (NPCI) said that as per the RBI's Payments Vision 2025, digital payments are for everyone, everywhere, and every time.

"'Everyone' challenges us the most because it needs to address some of the biggest barriers -- affordability, access to identity, and literacy as we go deeper and broader into our markets and user base," said Rai.

--IANS

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