India’s fintech sector has seen rapid growth, with the integration of technology in financial services. The rise of fintech in India is marked by a significant increase in startups, from 733 in 2016-17 to over 14,000 in 2021-22. Key segments include digital lending, payments, insurtech, and blockchain.
One notable development is CSB Bank’s adoption of Oracle’s Flexcube, a core banking system. This partnership will integrate Oracle’s core banking, payments, digital banking, trade financial, virtual accounts, and analytics software. The cloud-based Oracle Flexcube solution will replace Maarvel, CSB Bank’s homegrown core banking solution. This move signifies CSB Bank’s commitment to digital transformation, reflecting the broader trend in India’s fintech sector.
Startup boom to core banking innovations
India has emerged as a global powerhouse in the fintech sector, boasting the highest fintech adoption rate globally at 87 percent, significantly higher than the global average of 64 percent. The Indian fintech industry’s market size was estimated at $50 billion in 2021 and is projected to triple to approximately $150 billion by 20251. The total addressable market for Indian fintech is estimated to be $1.3 trillion by 2025.
The key segments of the fintech sector in India include digital lending, digital payments, insurtech, wealth tech, and blockchain. The digital lending market in India was worth $270 billion in 2022 and is expected to reach $350 billion by 20231. India is also the second-largest insurtech market in the Asia-Pacific region and is expected to grow by approximately 15 times to reach $88.4 billion by 2030.
Confluence of Startups
The Indian fintech landscape is home to over 3000 fintech startups registered by DPIIT1, and India accounted for 46 percent of all real-time transactions worldwide in 20221. This rapid growth and adoption of fintech solutions have been facilitated by the country’s large base of internet users and the integration of technology in the delivery of financial services.
In conclusion, the integration of Oracle’s Flexcube by CSB Bank is a testament to the vibrant and rapidly evolving fintech landscape in India. As more financial institutions continue to embrace digital transformation, India’s fintech sector is poised for unprecedented growth, offering immense opportunities for businesses and consumers alike.