Indian fintechs raised a record $9 billion in 2021, setting the tone for the funding and growth boom to continue in 2022. Experts believe continued collaboration between banks and fintechs will be crucial as neobanks and digital lending lead growth.
A fintech acquiring a sinking bank, PayU’s most expensive acquisition in India, record funding and a ‘blessing’ of Unicorns. For Indian fintechs, that was 2021 -- a year of many firsts.
In 2021, Indians saw, more clearly than ever, how fintechs are changing access to financial services – be it payments, neobanks, lending, insurance, stockbroking… you name it. New trends took shape, new words became part of our day-to-day vocabulary.
The fact that Indians are moving online for their financial needs faster than ever made investors pour money into the sector. A total of $9 billion was raised by fintechs in 2021, according to data by Tracxn.
As various fintech verticals grew their offerings and user base, regulators took notice and proposed regulations across sectors. Come 2022, we can expect digital lending and neobanks to be regulated, as per recommendations by the Reserve Bank of India (RBI) and Niti Aayog. But according to industry leaders, the collaboration between banks and these fintechs will not slow down anytime soon.
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