India emerges as global fintech hotspot: WEF

New Delhi

India has been named one of the top global fintech hubs, alongside the United States and the United Kingdom, according to a new report released by the World Economic Forum (WEF). The study was unveiled during WEF’s Annual Meeting of New Champions in Tianjin, China.

The report highlights how India’s fast fintech growth and strong focus on financial inclusion have earned it a place among key fintech countries. Other leading hotspots include Singapore, Brazil, and Indonesia, with each of these nations home to more than ten active fintech firms.

The WEF study — conducted with the Cambridge Centre for Alternative Finance — reveals that fintech companies are now moving from rapid expansion to sustainable growth. In emerging markets like India, fintechs are making a big impact by serving underserved communities such as MSMEs, low-income groups, and women. These groups now form a major part of the customer base: 57% are MSMEs, 47% are low-income individuals, and 41% are women.

Globally, fintechs have seen customer growth stabilizing at 37%, while revenues and profits have grown by 40% and 39% respectively. The report also found that AI tools are improving business outcomes, with 83% of fintechs reporting better customer experience and three-fourths noting cost savings and increased profits.

Although macroeconomic conditions and funding concerns remain challenges, they have declined compared to last year. Only 18% now see the economy as a hindrance, down from 56%, and just 12% mention funding issues, compared to 40% in 2024.

The WEF says more work is needed to boost capital access and improve regulations to ensure long-term fintech success.