Rapidly Growing FinTech Sub-domains in India

India’s FinTech sector is growing at a fast pace. PayTech, Lending Tech, WealthTech, InsurTech, RegTech and NeoBanking sub-domains exhibit great potential.

FinTech in India is growing at a fast pace. Within the sub-domains in FinTech, the following sub-domains exhibit significant growth in terms of investments, hiring, and revenue.

1.       Digital Payments (PayTech)

Digital Payments, or PayTech, encompasses mobile money systems, FinTech payment portals, and platforms facilitating transactions through UPI, mobile wallets, and QR code-based systems. This segment is a primary driver of India's FinTech growth, experiencing explosive adoption due to increased mobile-first users and nationwide acceptance of digital transactions.

UPI has revolutionized payments, accounting for 73% of all digital payments by FY26. In May 2023 alone, India witnessed 9,415 million transactions amounting to Rs. 14.89 trillion (US$180 billion) through UPI. The transaction values within the payments industry are projected to reach an astounding US$11 trillion by 2030. The number of UPI QR codes is also expected to rise significantly, from 202 million in 2022 to 317 million by the end of 2024.

Some of the notable players in PayTech space include Paytm, PhonePe, RazorPay and EasyPay.

2.       Digital Lending (LendingTech or LendTech)

Digital Lending platforms leverage technology to make credit more accessible, particularly to underserved populations. They utilize alternative data sources and advanced algorithms to streamline credit risk assessments, accelerate loan disbursement, and offer personalized financial products, filling gaps left by traditional financial institutions. This includes innovative models like Buy Now, Pay Later (BNPL).

The alternative lending sector in India secured US$517 million in Q3 2024, marking a 49% increase from Q3 2023 and a 199% rise from Q2 2024. The lending sector's book size is projected to grow 6.6 times, reaching US$300 billion within the next five to six years. In 2023, digital lending platforms disbursed loans amounting to INR 1.3 trillion, driven by increasing consumer demand for personal loans and SME financing.

Some of the notable players in LendingTech space include Lendingkart, Kissht and Faircent.

3.       Wealth Management (WealthTech)

WealthTech solutions are revolutionizing wealth management by democratizing, rationalizing, and personalizing financial planning and investment strategies. This sub-domain incorporates AI-driven robo-advisors, behavioral analytics, and open banking principles to enhance customer-centric investment recommendations. The integration of cryptocurrencies and blockchain technology is also being explored by investment and property management firms to transform asset management practices.

The investment technology segment in India secured US$109 million in Q3 2024, representing a 356% increase from Q2 2024. Assets under management (AUM) by WealthTech platforms are projected to surge fourfold to US$237 billion. The India WealthTech solutions market is expected to witness a CAGR of 20.98% during FY2025-FY2032, growing from USD 154.38 million in FY2024 to USD 708.43 million by FY2032. Globally, the WealthTech Solutions market is projected to reach $10.82 billion by 2029 at a CAGR of 14.8%.

Some of the notable players in WealthTech space include Angel One, Valuefy and DeZerv.

4.       Insurance (Insurtech)

Insurtech involves the application of technology, including AI, Big Data, and Blockchain, to restructure and enhance the efficiency of the insurance industry. It aims to improve customer experience, streamline processes, reduce costs, and offer personalized insurance products and services, such as usage-based insurance models.

The Insurtech sector is expected to reach US$15 billion in gross written premium by 2030. India's Insurtech landscape boasts over 150 companies, having collectively raised over US$2.5 billion in funds and generating revenues exceeding US$750 million. The industry includes 10 unicorns and soonicorns, alongside over 45 minicorns. The India Insurtech Market is projected to witness a CAGR of 25.58% during FY2025-FY2032, growing from USD 1.02 billion in FY2024 to USD 6.31 billion by FY2032. Another projection indicates an even higher CAGR of 55.4% from 2024 to 2030, reaching US$8,047.9 million by 2030.

Some of the notable players in InsurTech space include PolicyBazaar and Acko.

5.       Regulatory Technology (RegTech)

RegTech utilizes advanced technologies like AI, Machine Learning, and Blockchain to enhance efficiency, reduce costs, and mitigate risks by automating regulatory reporting, fraud detection, and identity verification. It helps financial institutions navigate increasing regulatory complexity and ensure compliance.

The India RegTech Market size was estimated at USD 302.42 million in 2024 and is projected to grow at a CAGR of 36% to reach USD 2,602.44 million by 2031. Another report projects the market to reach USD 2,183.9 million by 2033, exhibiting a CAGR of 17.4% during 2025-2033. The growth is driven by the increasing complexity of financial regulations and the adoption of AI and ML in compliance.

Some of the notable players in RegTech space include Signzy, Tookitaki and Perfios.

6.       Neo-Banking

Neo-Banking refers to mobile-first, digital-only banking platforms that offer seamless user experiences, often at lower costs than traditional banks. These platforms aim to provide convenient and accessible financial services, particularly in developing markets where conventional banking infrastructure may be limited, thereby driving financial inclusion.

The Neo-banking market in India is projected to reach a revenue of US$144,240.0 million by 2030, exhibiting a robust CAGR of 57.6% from 2023 to 2030. Another forecast indicates a market size of approximately USD 143.29 billion in 2024, expected to reach USD 5071 billion by 2033, growing at a CAGR of about 48.9% from 2025 to 2033. India is recognized as the fastest-growing regional market for Neo-banking in Asia Pacific.

Some of the notable players in Neo-Banking space include NiYO, Open and Revolut.

Planning your FinTech Career

If you are a graduate or an early career professional looking to make a career in FinTech, these sub-domains would provide good careers with growth possibilities. You should therefore plan to acquire skills that give you and entry in one of these sub-domains.

Which sub-domain will you be specialising in?

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