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FinTech software services market to reach $14 bn by 2020: Amitabh Kant

NITI Aayog chief says, India is in the top of ten financial technology markets in the world

Press Trust of India  |  New Delhi 

NITI Aayog CEO Amitabh Kant
NITI Aayog CEO Amitabh Kant

Financial technology market is expected to increase to $14 billion in next three years given the proliferation of in the country, CEO said today.

"Currently, more than 600 startups are in the field of lending, payments, insurance and trading and the current financial technology 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 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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, July 28 2017. 17:42 IST