India's Fintech Sector Enters Next Growth Phase with Focus on Diversification and Risk Management
.jpg)
Rapid Growth and Emerging Trends India’s fintech sector, particularly digitally driven Non-Banking Financial Companies (NBFCs), continues to witness impressive expansion. According to a new report by TransUnion CIBIL , the sector is now entering a transformative phase centered around product diversification, enhanced risk management practices, and deeper financial inclusion. As of December 2024, fintech lenders reported an outstanding loan balance of ₹1.3 trillion—reflecting a 32% year-on-year increase. While fintechs currently contribute only about 1% of the total outstanding industry loan balances, their influence is dominant in specific loan categories, particularly Small Ticket Personal Loans (STPLs) . Dominance in STPL Market Fintech lenders have captured a striking share of the STPL market. Nearly 89% of personal loans under ₹50,000 were originated by fintech lenders, showcasing their dominance in the micro-credit space. This trend aligns with the industry’s push to cater...