October 5, 2017
There are ~1K FinTech companies in India, over half of them born in the last couple of years. A handful of them will make it to the top of the scale being first movers with unique and innovative products and services (like Paytm). Some others will be the subject of M&A (like Freecharge). Some will perish.
Pervasive surge and the success of FinTech in India (not skewed by a few) rest heavily on how those in the middle of this scale survive and grow. These are the mid-caps of FinTech.
The growth of FinTech relies heavily on development and maturity of an ecosystem around it. Banks and most vitally the regulator are the biggest change agents in this ecosystem. This must happen along the following two dimensions:
The European Union, by some distance, has been the pioneer in open banking models. The earliest partner consumable API stores were established in 2008/2009 followed by slow experimentation with innovative models.