From Technology to Digitalisation, How will Indian BFSI Sector Perform in 2018? 'Consolidation of fintechs will be a high probable event in 2018'

By Vanita D'souza

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.


From the implementation of GST to the growing popularity of Bitcoins and the stock markets scaling new heights, 2017 proved to be an eventful year for the Indian financial sector. However, of all events, the biggest disruption in this sector was caused by technology.

With the advancement of digitalization and huge inroads made by fintechs, will the Indian financial services sector continue to disrupt or the companies will gracefully embrace technology in 2018? In a conversation with Entrepreneur India, some of the key BFSI stakeholders spill beans on what should India expect from the sector in New Year.

GST Impact:

Sudip Bandyopadhyay, Group Chairman, Inditrade group of companies feels that GST will impact the BFSI sector at two levels and those companies that successfully digitalize their operations will be best equipped to manage the transition at both levels.

"As a result of GST, the internal operations of companies in this sector will have to ensure compliance to requirements of registration of branches in different states, cope with the possibility of higher costs of borrowing due to reduced tax credits and possibly, more complex assessment and adjudication of tax issues," he said.

At the same time, to effectively cater to the needs of clients, BFSI companies will have to considerably overhaul their IT systems, as the backbone of GST is digitization, which in turn requires IT support.

"A number of BFSI transactions, be it fundraising, fee-based services, insurance services, lending, lease, hire purchase, etc., all attract GST. Accordingly, the ability to process high volume data in order to be ready for complete GST compliance will depend on how competent and vigilant the IT services of companies in the BFSI sector are," he added.


Ajinkya Lokhande, Director, BitBox claimed that blockchain is the future and if anyone is denying the potential of the technology today then, we are doing the same thing that people had done to the internet in the 1980s.

Even Apurva Damani, Managing Partner, Artha India Ventures concurs with Lokhande and believes in blockchain's prospective future. However, "with so many start-ups claiming to use blockchain, there is still scope for creating a good business model based on the solution," she shared.

The VC firm is also anticipating more debate around permission vs. permission-less blockchains in 2018.

Additionally, when discussing blockchain, one cannot ignore the growing popularity of cryptocurrency, which is presently in the grey area when it comes to regulations. Damani and her fellow partners are looking forward to knowing SEBI's take on the matter and how will the government regulate cryptocurrency trading.

While on the other side, looking at the growth of current trading volumes, Lokhande is expecting exchanges to introduce multiple cryptocurrency pairs and futures trading on their platforms. Cryptocurrency futures trading is presently unavailable in India.

Opportunites for Fintechs

Consolidation of fintechs will be a highly probable event in 2018 with players trying to find their niche to expand target segments and growth verticals while looking for active collaboration with banks and other financial services companies that are increasingly wanting to digitize the lending verticals.

Manish Lunia, Co-Founder of says the Indian fintech lending ecosystem will witness transformational opportunities in the coming year due to GST data availability, E-NACH mandates and POS digitization initiatives of the government that will expand the eligible borrower ecosystem.

"With seasoned books, fintechs will be able to run artificial intelligence and machine learning-based algorithms that will have large testing databases to improve the efficiency of their models. The digital sources of loan origination will expand with the customers getting familiar with these companies," he added.

Additionally, Damani from Artha feels with an increase in digital transactions month on month, India will see more ancillary services burgeoning in the payments space.

Vanita D'souza

Former Senior Correspondent, Entrepreneur India

I am a Mumbai-based journalist and have worked with media companies like The Dollar Business Magazine, Business Standard, etc.While on the other side, I am an avid reader who is a travel freak and has accepted foodism as my religion.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Related Topics

Starting a Business

4 Hard Truths You Must Accept to Become Successful

As you buckle up for entrepreneurship, remember – it's not just a journey but an epic adventure towards enduring achievement in the dynamic business world.

Side Hustle

Getting Laid Off Allowed Him to Focus on His Sentimental Side Hustle. Now He's on Track to Earn Over $700,000 in 2024.

Alaa El Ghatit wasn't fulfilled at his day job. So he started LifeOnRecord to help people record memories and well wishes.

Social Media

With This LinkedIn Algorithm Change, Your Best Posts Could Reach New Readers for Months

It's one of many new features rolling out on the platform in 2024.

Growing a Business

From 30 to 300 — 5 Ways to Keep Your Vision and Mission Intact as Your Team Grows

The keys to scaling your business successfully are culture, connection, and knowing everyone's name.

News and Trends

Vijay Shekhar Sharma Steps Down from Paytm Payments Bank Board

Ashok Kumar Garg, Debendranath Sarangi, Rajni Sekhri Sibal and Srinivasan Sridhar are the new board members of Paytm Payments Bank.

Business Ideas

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.