Digital Lending and Transactions Surge in India

By siliconindia  |  Thursday, 27 June 2024, 06:47:23 PM IST

Digital Lending and Transactions Surge in India
India's digital lending market has witnessed robust growth, expanding at a Compound Annual Growth Rate (CAGR) of 33% from FY19 to FY23, reaching Rs 2,905 thousand crore from Rs 913 thousand crore, according to a report by Praxis Global Alliance released. Concurrently, digital transactions surged by 44% year-on-year during the same period, rising from Rs 46,616 crore to Rs 92,267 crore.
Madhur Singhal, Managing Partner of Financial Services at Praxis Global Alliance, highlighted the flourishing fintech ecosystem in India amidst various challenges, presenting significant growth opportunities for the sector. The report underscored a 41% CAGR in disbursement amounts by fintech firms from FY21 to FY23.
The evolving fintech landscape in India is setting a new trajectory, focusing on untapped sectors, forging collaborations with traditional financial institutions, and prioritizing governance and compliance standards. The integration of AI/ML technologies has enabled fintech lending players to adopt advanced underwriting models, facilitating quicker and more precise credit assessments.
Termed as 'fintech reloaded,' this next generation of fintech is poised to bring transformative changes to the financial services industry. The report also highlighted the pivotal role of UPI (Unified Payments Interface) in revolutionizing peer-to-peer payments across India, reflecting the rapid adoption and impact of digital payment innovations.

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