2024 Tech Trends Projections for Indian Fintech Industry

The Indian fintech industry in 2024 is poised for significant growth and innovation, driven by a convergence of advanced technologies, regulatory changes, and government initiatives.

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Tech trends

Tech Trends

The ever-evolving banking and fintech landscape in India has propelled the need for anticipation more than adaptation. The convergence of new-age technologies such as AI with the dynamic regulatory landscape and government of India’s agenda of financial inclusion has put a spotlight on this sector. Here are top 6 tech trends projections that will contribute to the growth trajectory of Indian fintech sector:


Advanced technologies to drive better value creation: We’ll witness new-age technologies such as AI, ML, data analytics increasingly becoming intertwined and integrated with Indian fintechs, given its ability to generate better value creation. Expect a 40% increase in AI-driven customer interactions. In fact, AI and ML will revolutionize risk assessment, with predictive analytics reducing loan defaults by up to 25%, as industry reports state. The utilization of big data analytics will result in a 30% increase in customer retention rates through personalized financial products and services.

Open Banking ecosystem growth to accelerate: The era of open-banking enabled innovation in India has just begun. In 2024, open banking in India will envisage secure and seamless sharing of data, paving the way for increased collaboration between traditional banks, Fintechs and third parties. The underlying API technology will foster a wave of customer-centric innovative product ideas, delivering more accessibility and transparency to consumers.

Full-stack model is the way ahead: Expansion of India’s financial inclusion action-plan in 2024 will bring to spotlight end-to-end fintech platform models. While such models will enable Fintechs’ to deploy nuanced customer-centric products, enhanced security, catering to varying customer needs on a single platform, the customers such as banks, businesses and others, will lean towards it for better operational efficiency, reduced costs and more scalability.


UPI’s dominance to continue: The exponential growth of UPI in India’s digital payment landscape will continue in 2024 and beyond. NPCI’s mission to cross 100 crore UPI transactions per day by FY27 indicates that UPI’s contribution to India’s digital payments ecosystem is yet to be explored fully. Features like UPI Lite, UPI123Pay, Credit line on UPI, etc. will create the right growth levers for UPI, thereby increasing the penetration of digital payments in remote parts of the country. Infact, this year, UPI’s march to global economies will also witness new highs.

The rise and rise of RegTech: The need to ensure financial stability and navigate cyber- and data-security risks, RBI has increased its vigilance in the financial sector. The RegTech industry in India is expected to expand further, given the push from the Government of India to go digital on all regulatory and compliance obligations. In 2024, investments in RegTech are expected to grow by 30% as per industry estimates, which would primarily be focused on compliance automation, etc. Additionally, the adoption of new-age technologies like Generative AI will reshape Automation, Fraud Analysis, customer support services, Assistive Tech, Financial & Wealth Management services, to create robust digital payments landscape.

CBDCs to make cross-border payments more efficient: India's successful pilot of its own retail Central Bank Digital Currency (CBDC) in 2023 has paved way for RBI to offer customers with a ubiquitous and seamless payment mode that leads to value creation. Given the rise in globalization, e-commerce, and retail, CBDCs will help reduce operational costs, boost innovation in cross-border payments, and quell concerns over national security issues. As Fintechs look to provide merchants with fast, efficient and compliant access to payments in international markets at lower transfer or exchange rates, CBDCs will prove to be a game changer in this context in 2024.

 By Narendra Babu, Chief Technology Officer, PayU