Mumbai, Aug 29 (IANS): The Indian fintech sector continues to remain resilient and its revenues are projected to reach $190 billion by 2030, contributing to more than 20 per cent of all banking revenues, a new report has said.

The Indian fintech sector grew 50 per cent by revenue in 2023 and the growth trajectory is expected to continue, according to the Boston Consulting Group (BCG) report.

The path ahead, the report mentioned, is to leverage critical and emerging technologies - Generative AI and API-based open architecture - across diverse functions such as customer service automation to fraud detection, said the report launched during the Global Fintech Fest (GFF) here.

The foundation of the robust fintech ecosystem in India was laid by the digital public infrastructure 1.0 (Aadhaar and UPI, etc).

“It is creditable that Indian fintechs have achieved a 50 per cent growth rate in 2023 compared to the global average of 13 per cent. It is also encouraging that Indian fintechs are demonstrating a path to profitability earlier than what was expected 2-3 years ago,” said Yashraj Erande, Global Head of Fintech and India Head of Financial Institutions at BCG.

The report mentioned that there is an opportunity to strengthen the core of the global financial services infrastructure, even more so for India.

Investments to the tune of $1 billion will be required for the modernisation of Indian financial services players, over the next five years.

“We are confident that the next wave of growth will be powered by DPI 2.0 (ONDC and National Health Stack etc.) and AI-driven DPI 3.0,” Erande added.

The global fintech funding has now stabilised ($7-10 billion per quarter over the last four quarters). In terms of market size, the sector is on-track to achieving $1.5 trillion in revenues by 2030, predominantly driven by the Asia Pacific (APAC), along with the North American (NAMR) region.