India among most vibrant fintech hubs: WEF study

According to the report, the global fintech industry remains strong, with customer growth rates averaging above 50% across industry verticals and regions.

People attend the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 18, 2024. | Photo Credit: REUTERS

India is among the most significant operating countries for hosting a thriving cluster or fintech headquarters, a WEF study showed on Thursday.

Releasing the report during its Annual Meeting 2024 in Davos, the World Economic Forum said fintechs are increasingly expanding operations across borders, mainly in the same region as their headquarters.

"The study reveals that vibrant hubs such as Singapore, the UK, the US, and India have hosted a thriving cluster of fintech corporate headquarters.

"Among the countries surveyed, the most significant operating countries for fintechs include the US, the UK, Singapore, Mexico, and India," it added.

According to the report, the global fintech industry remains strong, with customer growth rates averaging above 50% across industry verticals and regions.

Consumer demand is the main driver of growth, and fintechs are offering tailored financial services and products to traditionally underserved segments of the population, it noted.

The report said the global fintech industry is demonstrating strength and resilience and continues, despite an unclear economic outlook, to expand financial services offerings to traditionally underserved consumers and businesses.

'The Future of Global Fintech: Towards Resilient and Inclusive Growth', developed in collaboration with the Cambridge Centre for Alternative Finance (CCAF) at the University of Cambridge Judge Business School, is based on a global survey of over 200 fintech companies across five retail-facing industry.

It covered six regions – Asia-Pacific, Europe, Latin America and the Caribbean, Middle East and North Africa, the US, and Canada, and sub-Saharan Africa – to take the pulse of the rapidly evolving fintech ecosystem.

The report found that the majority of financial technology companies hold a positive view of their regulatory environment, with 63% rating it as adequate.

Additionally, 38% of surveyed fintechs cited the regulatory environment as a major supporting factor for their operations and growth.

However, a substantial portion of fintechs found regulatory compliance challenging and the licensing and registration processes to be problematic, indicating an area where policymakers and regulators could make improvements.