The current landscape suggests a growing influence of fintechs in India. However, growth and investments have primarily confined in the payments and credit domains, and in a few metro cities. Most fintechs serve the affluent, tech-literate customers in Tier-1 geographies, leaving over 80% of the addressable low- and middle-income (LMI) customer market untapped.

While the LMI segment offers a blue ocean for different stakeholders such as fintechs, investors, donors and incumbents, there exists a significant disconnect between fintechs and investors, and fintechs and incumbents. Moreover, most incubator and accelerator programmes in India are sector-agnostic, and offer standardised, light-touch and shallow support with no focus on the LMI segments.

This report highlights the support areas for fintechs to offer convenient and affordable financial solutions to the LMI segments. It also proposes to set-up a dedicated ‘Financial Inclusion Lab’. The Lab will provide high-touch, immersive consulting, catalytic support, and customised services to early-stage fintech start-ups in India.

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