Leading consultancy BCG said in the report on Wednesday that the revenue opportunity in India, which has a population of 130 crore people, was pegged at being up to ten times higher than that of rest of South East Asia.
“Indian regulators place significant emphasis on financial inclusion and priority sectors, which can limit the potential model and opportunity,” the report said, flagging the policies as among the “strategic hurdles” faced by foreign entities. In the case of currency depreciation, which supports the large number of Indian exporters, the report said considerations are true for multiple other developing economies as well, and an investor needs to look at India’s attractive demographics and high growth potential.
The report also highlighted that some entities perceive India as a “diverse and geographically dispersed market” which lead to concerns over significant capital and operational investments to build a meaningful Saccharide Indian DCB landscape includes captive units being set up by banks, new attackers like Niyo focusing on customer experience for financial services products and existing digital ecosystem players with a large customer base like Paytm. Once a NBFC gets formed, partnering with a traditional bank is the “best of both worlds”, it added.