The transaction value for the Indian fintech sector is estimated to be approximately $33 billion in 2016 and is expected to reach $73 billion in 2020, growing at a five-year compound annual rate of 22%, according to a recent report on fintech by KPMG.
Rapidly growing penetration of smartphones and internet has led to the emergence of multiple technologies for replacing cash, providing credit information for screening, enabling online lending and purchasing of financial products through digital means.
Going forward, the recent provision of payment bank licenses by RBI is likely to aid in monetizing this digital trend and making technology as the core offering. RBI has also given licenses to 10 entities for setting up Small Finance Banks. Through this initiative, RBI aims to extend the credit facilities to micro and unorganized sectors. Alongside this, RBI has also come up with a report on Medium term path for financial inclusion, which aims to set the path for 90 percent financial inclusion by 2021.
This initiative, among others, creates business opportunities for Indian and Israeli Companies alike.
Israel uses indigenous technology skills and a strong network of foreign investors, providing favourable environment to foster fintech innovations. Israel has emerged as a strong fintech ecosystem, with more than 500 active fintech start-ups registered in 2015. This is primarily driven by their legacy of innovation and technology. This has been coupled with strong overseas investor interest, presence of more than fourteen global innovation centres, three global fintech hubs, an organized financial sector and steady policy support. Tel Aviv has launched multiple international events to provide a global platform to Israeli start-ups, which are presided by celebrity Israeli serial entrepreneurs to keep engaging the right audience in the world forum.
Relevant Indian companies, which are interested to learn more on potential collaboration with Israeli companies in the fintech area, are invited to contact the Economic and Trade Department at the Israeli Consulate General in Bengaluru.
For further details, contact;
Kavitha Saravanan – Trade Officer, Bangalore
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