In 2023, how will fintech advance?

Despite a general decline in venture funding and the ripple effects of the cryptocurrency business, financial services continued to be one of the top areas for financing in 2022. Fintech is anticipated to continue to grow in 2023, solidifying India as the centre of financial innovation.

In 2023, How Will Fintech Advance?​

The Indian fintech industry was hampered by a series of setbacks in 2022, including collapsing valuations, the cold winds of the financing winter, funding freefalling to levels worse than those of pre-Covid-19, and the catastrophic collapse of nascent businesses.


According to research firm data, spending on the Indian fintech ecosystem decreased by almost half, from $10.3 billion in 2021 to about $5.7 billion in 2022.The government calls for stricter law enforcement to better protect users followed. Slice and Uni’s business models were disrupted by the Reserve Bank of India’s (RBI) ban on non-bank fintech companies filling their prepaid instruments using credit lines. The crypto industry’s huge asset price declines have further added to the sector’s problems.


Despite the difficulties that lie ahead, stakeholders in the fintech sector appear to be optimistic about the direction that the sector will take in 2023.

Furthermore, an EY analysis predicts that by 2030, the domestic fintech industry would generate $200 billion in revenue and $1 trillion in AUM.

India is now in a great position to inspire a new wave of innovation in the fintech sector.

Several fintech companies that have been successful in India might also find that other emerging economies are copying their business strategies. “Revenues and business models will show growth and maturity with increased adoption rates and newer B2B fintech startups growing up,”


According to experts, the fintech industry’s payments segment may continue to receive the most funding, particularly for B2B payment-focused businesses. While there are many underserved populations in the country who lack access to even the most fundamental financial goods, emerging markets offer another expansion potential for fintech businesses. Additionally, they anticipate consolidation as fewer companies can scale up and capital becomes scarcer.

Fintechs with tested business models, cutting-edge goods and services, strong teams with the capacity to scale, and these attributes will continue to draw investment, albeit at lower values than in the past.


According to a TransUnion CIBIL survey, credit awareness among Indian individuals has significantly increased, especially among Gen Z audience living in non-metro areas.

It should come as no surprise that more Generation Z are now falling into the category of customers who the fintech companies seek to attract.

Credit is becoming more easily accessible at a greater credence thanks to technologies like the Account Aggregator architecture and AI.

The next wave of growth in the fintech sector may be sparked by the technologically savvy Gen Z.