AI Becoming More Central and Intuitive to Indian Fintech's Future, Say Experts AI in Bharat's FinTech sector is becoming far more intuitive and deeply personal. The next phase of growth will be shaped by platforms that understand people in their own languages and reflect the rhythms of everyday financial life.

Indta's fintech sector is undergoing a transition from "hypergrowth" to "purpose resilience," with the next round of capital deployment to be more selective. The focus will be more on sustainable business models, governance maturity, and measurable impact, according to a KPMG study, noting that innovation will remain a key factor, alongside execution, compliance, and investor alignment.

According to the KPMG data, funding in India's fintech sector has declined from USD 3.1 billion in the first half of 2021 to USD 1.5 billion in the first half of 2025, showing a worldwide shift toward cautious, quality-focused capital deployment.

It said that the mature sub-sectors like lending and payments now account for nearly 60 per cent of total investments, mainly driven by the sector's ability to deliver predictable returns. Investors are now backing fintechs with proven unit economics, disciplined customer acquisition costs (CAC), and differentiated outcomes, according to a KPMG study.

Akhilesh Tuteja, Partner and National Leader, Clients and Markets, KPMG in India, said in the report that the Indian fintech sector has been a defining force in reshaping how financial services are accessed and consumed. Over the last decade, companies in fintech have solved critical issues in payments and lending, and financial inclusion.

"However, the journey ahead demands a shift from addressing isolated challenges; it calls for building integrated value propositions that transcend silos. Embedded finance offers precisely this opportunity, enabling fintechs to weave financial services seamlessly into everyday user experiences, creating an enduring impact for the broader ecosystem," said Tuteja, adding that artificial intelligence (AI) is increasingly becoming core to this movement, unlocking unprecedented potential to scale intelligence across operations.

Sarvjeet Singh Virk, Co-Founder and MD, Finvasia and Jumpp, said that AI in Bharat's FinTech sector is becoming far more intuitive and deeply personal. The next phase of growth will be shaped by platforms that understand people in their own languages and reflect the rhythms of everyday financial life.

"Regional language fluency will play a key role in expanding meaningful engagement across the country and strengthening trust in digital finance. For users in Tier 2 and Tier 3 markets, intelligent financial technology is creating smoother journeys and clearer visibility into money-related choices," said Virk.

Virk added that by learning from individual behaviour, transaction signals, and local context, artificial intelligence is delivering hyper-personalised experiences that feel timely, relevant, and easy to explore. This encourages thoughtful decisions around savings, investments, and long-term goals, enabling broader participation in wealth creation with confidence and ease.

"Smart insights, delivered through simple and intuitive interfaces, are shaping a future where financial tools operate seamlessly in the background while adding genuine value. AI is steadily evolving into a trusted companion that supports sound judgment and sustained progress.

As Bharat's FinTech ecosystem continues to mature, human-centric AI will remain a powerful driver of clarity, confidence, and inclusive wealth creation, helping people across regions engage more actively with the opportunities ahead," said Virk.

As capital discipline tightens, India's fintech story is entering a more measured chapter, one defined by resilient models, integrated offerings, and human-centric AI. Those combining governance, localisation, and embedded intelligence are likely to attract the next wave of durable capital and shape inclusive, long-term financial outcomes.