New Delhi, June 26 : Despite significant shifts in funding and valuations, the global fintech industry saw a robust annual revenue growth of 14 per cent from 2021 to 2023, a report showed on Wednesday, adding that India is reaping the benefits of investment in digital public infrastructure (DPI).





Governments, especially in countries such as Brazil and India, are reaping the benefits of investment in integrated DPI, spurring dramatic growth in digital payments and innovation on top, according to the report by Boston Consulting Group (BCG) and QED Investors.



When we look at data, the unified payments interface (UPI) platform processed 13,115 crore transactions in FY24, aggregating to nearly Rs 200 lakh crore in value, compared with 8,376 crore transactions worth Rs 139 lakh crore in FY23.



Fintech leaders have hailed Prime Minister Narendra Modi's vision to help India lead in digital payments, saying that the country's fintech landscape is now a hotbed for innovation, reflecting the nation's fearless spirit.



India is home to more than 10,000 fintech companies working in diverse sectors and segments.



According to the BCG report, perhaps more notably, the industry has initiated a shift from a 'growth at all costs' model to one focused on profitable growth, with margins improving by 9 percentage points on average.



'Profitability and compliance are now the cornerstones of fintech success,' said Deepak Goyal, BCG managing director and senior partner and co-author of the report.



'They are essential for attracting continued investment, scaling operations, and building lasting, valuable companies,' he added.



With an annual global profit pool of $3.2 trillion on a base of $14 trillion of total revenue, the global financial services industry is both massive and ripe for innovation.



'While the $320 billion of fintech revenue represents less than 3 per cent today, the exponential advances in GenAI and continued growth in embedded finance means we're still in the early innings of fintech's journey, where the separation of winners and losers is becoming apparent,' explained Nigel Morris, QED Investors Managing Partner.



The global fintech market has continued to grow revenues at a robust pace: 14 per cent over the past two years across the board, and 21 per cent when crypto- and China-exposed fintechs are excluded (both at a compounded annual growth rate).



The report outlined four trends that will drive the industry in the coming years ' embedded finance will be a $320 billion market by 2030; connected commerce is poised for liftoff; open banking will have a modest impact on banking, but a greater impact on advertising and Generative AI will be a game changer for productivity.



/IANS