Fintech Market Soars with Immense Potential Driven by Key Factors

In conversation with Prisila, correspondent, Asia Business Outlook Magazine. April Tayson shares her views on how can marketers take advantage of new trends in light of the ongoing fintech transition to spur growth.

Important aspects are driving this fintech market's expansion

The fintech market in India has witnessed remarkable growth in recent years, fueled by several key factors. The widespread adoption of smartphones and increasing internet penetration has played a significant role. With a large population that is digitally connected, fintech apps have gained popularity as convenient and accessible platforms for financial transactions, investments, and banking services. This digital revolution has opened up new opportunities for financial inclusion, especially for the unbanked and underbanked population in India.

A rise in the use of data analytics and artificial intelligence (AI) technologies has also transformed the fintech landscape in India. Fintech companies are leveraging advanced data analytics to gain insights into customer behavior to personalize products and communications. AI-powered chatbots and virtual assistants are enhancing customer support and streamlining processes. These technologies not only enhance user experiences but also enable fintech companies to make data-driven decisions, detect fraud, and mitigate risks effectively. The integration of cutting-edge technologies has positioned India's fintech market as a hub for innovation and disruption in the financial services sector.

Overall, India's fintech market holds immense potential for further expansion.

How is the use of fintech apps being pushed by the rapidly changing fintech ecosystem in INSEA? How have app install statistics increased over the past few years?

Government initiatives such as the Digital India campaign and the Unified Payments Interface (UPI) have acted as catalysts for the growth of India's fintech market. The government's push toward a cashless economy has resulted in the rapid adoption of digital payment solutions, mobile wallets, and online banking services. The UPI system, in particular, has revolutionized peer-to-peer payments and enabled seamless fund transfers across different banks and payment platforms. These initiatives have created a favorable regulatory environment, promoted innovation, and boosted consumer confidence in fintech apps.

As more players enter the market, competition will intensify, leading to further innovation, product diversification, and improved financial services for consumers across the country. According to our data, in Q4 2021 we saw a peak in fintech app installs in India at nearly 500% (497%) above Q1 2021. While a dip was seen following this summit, we have seen continued gradual growth in the volume of installs since. Fintech app installs in Q1 2023 were up 9% on the previous quarter (Q4 2022) and 112% above Q1 2021’s installs. We expect to see install figures continue to grow incrementally.

How can marketers take advantage of new trends in light of the ongoing fintech transition to spur growth? How can they benefit from the knowledge of the fintech app users' generation?

Marketers who wish to remain competitive in this rapidly expanding fintech app landscape must leverage existing and emerging technology trends to tap into the knowledge and preferences of the app users' generation.

"India’s fintech app marketers can also capitalize on the fintech app generation's inclination toward social media and online communities"

Increasingly tech-savvy individuals who are comfortable with digital platforms expect personalized experiences and targeted messaging. With strong opt-in strategies for user-level data, as well as the use of audience segmentation tools, marketers can tailor their strategies and offerings to resonate with segments of their target audience; for example by demographic, psychographic, and behavioral characteristics.

Although iOS users only accounted for 7% of fintech app installs in India in Q1 2023, Android is moving toward a privacy framework reminiscent of Apple’s SKAdNetwork with the gradual introduction of its Privacy Sandbox. For this reason, marketers must remain abreast of the latest aggregated analytics strategies and updates on the public rollout of the Privacy Sandbox. We recommend participating in the beta.

India’s fintech app marketers can also capitalize on the fintech app generation's inclination toward social media and online communities. This generation is active on various social media platforms, and they rely on peer recommendations and online reviews when making financial decisions. By engaging with users on social media, leveraging influencer partnerships, and encouraging user-generated content, marketers can amplify brand awareness, foster trust, and drive organic growth. By leveraging measurement and attribution tools, such as Adjust, marketers can pinpoint which channels work best for each trend.