Financial Services

India Is Expected To Be The Fourth Largest Private Wealth Market Globally By 2028.

Has nearly 1,00,000 banks and cooperative credit institutions

Asia’s top FinTech funding target market with investments worth $286 million

India’s foreign exchange reserve reached US$ 560.53 billion

Bank credit and deposits stood at US$ 1.39 trillion and US$ 1.92

The Mutual Fund industry’s Assets Under Management (AUM grew from US$ 156.82 billion in October 2014 to US$ 339.55 billion in April 2020)

The Indian banking system is the backbone of the country’s financial services industry consisting of - 12 public sector banks, 22 private sector banks, 44 foreign banks, 56 regional rural banks, 1,485 urban cooperative banks and 96,000 rural cooperative banks in addition to cooperative credit institutions.

The total asset value of the banking sector in the country is approximately US$ 270 billion. Of this, commercial banks account for more than 64% of the total assets held by India’s financial system. The value of public sector bank assets stood at US$ 1.52 trillion in FY20. As of October 23, 2020, India’s foreign exchange reserve reached US$ 560.53 billion. In addition, bank credit and deposits stood at US$ 1.39 trillion and US$ 1.92 trillion respectively.

Private and nationalized banks in India have started to adopt chatbots in customer support services. India is expected to be the fourth largest private wealth market globally by 2028.

With Demonetisation in 2016, began the digitization revolution of the financial industry. In FY18, India’s digital lending stood at US$ 75 billion and is estimated to reach US$ 1 trillion by 2024. India’s digital economy is estimated to reach US$ 1 trillion by 2025.

Fintech has more than 1200 active companies working to decrease customer acquisition costs while enhancing customer experience with the application of technology. Innovation is thriving at the grass roots of all business endeavours in the country. Like all sectors, the financial services sector has startups working day and night to bring simplicity and integration to practices and solutions.

Mobile banking is one of the most prominent current trends in the Indian banking system. India’s mobile wallet industry is expected to grow at a compound annual growth rate (CAGR) of 52% to US$ 4.4 billion by 2022, with projected worth of mobile wallet transactions at US$ 492.6 billion. The Unified Payments Interface (UPI) had recorded 1.25 billion transactions by March 2020, valued at US$ 29.22 billio.

India’s leading financial services company offering full-stack payments & financial solutions to consumers, offline merchants and online platforms – Paytm - is on a mission to include 500 million Indians into the mainstream economy through payments, commerce, banking, investments, and financial services.

Premier policy ‘Think Tank’ NITI Aayog is developing IndiaChain – the country’s largest blockchain network.

The Mutual Fund industry’s Assets Under Management (AUM) grew from US$ 156.82 billion in October 2014 to US$ 339.55 billion in April 2020. Equity mutual funds registered a net inflow of US$ 114.06 billion by the end of December 2019. The inflow in mutual fund schemes via Systematic Investment Plans (SIP) reached US$ 11.70 billion in 2019. The Association of Mutual Funds in India (AMFI) has targeted a five-fold growth in AUM to US$ 1.47 trillion and three-fold growth in investor accounts to 130 million by 2025.

The total first year premium of life insurance companies reached US$ 36.73 billion in FY20. Banks in India have increased focus on adopting integrated approaches to risk management. As an effect, non-performing assets of commercial banks have recorded a recovery of US$ 57.23 billion in the last four years. The Securities and Exchange Board of India (SEBI) has proposed direct overseas listing of Indian companies and other
regulatory changes. Reforms implemented by SEBI have enabled India to score a perfect 10 in shareholder rights protection.

State Bank of India (SBI), India’s largest lender has raised US$ 100 million in green bonds through private placement. India is a part of the “Top 100 countries’ Ease of Doing Business (EoDB)” club.

Pradhan Mantri Jan Dhan Yojana (PMJDY) is a financial inclusion program by the Government of India for Indian citizens, which aims to offer them affordable access to
financial services such as bank accounts, remittances, credit, insurance and pensions. By the end of 2020, deposits under Pradhan Mantri Jan Dhan Yojana had reached US$ 15.17 billion.

204,000 point of sale (PoS) terminals have been sanctioned from the Financial Inclusion Fund by National Bank for Agriculture & Rural Development (NABARD) to improve infrastructure in villages. The growth of the Financial Services Sector in India has been proportional to its economic expansion. The sector has experienced phenomenal growth in the recent decades, and moves forward in strident steps towards a future that promises great dividends to industry stakeholders.