India Emerges as Global Fintech Bright Spot Amid Soaring Credit Demand
- Fintech lending in India grew 35% in 2024 driven by high credit demand and strong digital infrastructure.
- India is a top fintech investment destination, powered by UPI, Aadhaar, and a growing middle class.
- Fintechs must balance innovation with trust and regulation to succeed in a rapidly evolving market.
India has solidified its position as a global fintech powerhouse, propelled by a robust digital public infrastructure, a mobile-first population, and a supportive regulatory environment, according to a new report by QED Investors and Boston Consulting Group (BCG).
The report highlighted a remarkable 35 percent compound annual growth rate (CAGR) in fintech-led digital lending in 2024, largely driven by surging consumer demand for credit across retail, consumption, and small and medium enterprise (SME) sectors. India’s growth trajectory is underpinned by platforms such as the Unified Payments Interface (UPI), Aadhaar, and the Account Aggregator framework, which have collectively enabled greater access to digital financial services.
“India stands at a unique inflection point in the global fintech landscape”, said Sandeep Patil, Partner and Head of Asia at QED Investors. “With a strong foundation in digital infrastructure and a tech-savvy, mobile-first population, the country has demonstrated how innovation can scale financial inclusion”.
The report noted that tools like UPI have unlocked a wave of fintech innovation spanning digital lending, payments, and wealth management. These developments have particularly benefitted the unbanked and underserved populations, accelerating India’s inclusion story and making it a hotspot for global investors.
India’s affluent middle class, currently representing 31 percent of the population, is projected to rise to 40 percent or approximately 600 million people by 2031. This demographic shift is expected to further fuel demand for financial products and services, making the country a strategic priority for both investors and fintech companies.
“To succeed in the next phase, fintechs must balance innovation with disciplined execution building trust, demonstrating profitability, and navigating a maturing regulatory environment”, Patil added.
Globally, fintech revenues grew by 21 percent in 2024, up from 13 percent in 2023, significantly outpacing the broader financial services sector. According to Deepak Goyal, Managing Director and Senior Partner at BCG, “A new class of scaled fintechs is emerging. Investors are demanding greater maturity, while regulators seek increased accountability. Meanwhile, next-gen disruptors are leveraging technologies like agentic AI to pioneer novel business models”.
The report concluded that India remains one of the top geographies for future fintech investments, with immense potential for growth through innovation and digital integration.
