Industry and Competitive Landscape Analysis (ICLA)

FinTech Industry

-Team 2
 Industry and Company Overview
About the Industry: Categories: • Paytm is India's leading financial services company that offers
It is the use of technology to provide The Fintech industry in India is full-stack payments & financial solutions to consumers, offline
financial services. categorized into following segments: merchants and online platforms.
Financial technology has been used to • Wealth Tech
automate investments, insurance, • Payments • It's wholly-owned subsidiary 'Paytm Money' is India's biggest
trading, banking services and • Lending investment platform, and is now one of the largest contributors
risk management. • InsureTech of new Systematic Investment Plans (SIPs) to the Mutual Funds
The services may originate from various • Bank Tech industry
independent service providers including
at least one licensed bank or insurer. • Investors include Softbank, Ant Financial, AGH Holdings,
Major Investors:
The interconnection is enabled through SAIF Partners, Berkshire Hathaway,T Rowe Price, and
open APIs and open banking and Discovery Capital.
supported by regulations.
• PayTM insurance offers insurance products to millions of Indian
Industry Growth: consumers across four categories including two-wheeler, four-
Transaction value was worth 65 billion USD wheeler, health and life with an aims to simplify insurance and
(2019) create a seamless, easy to understand online journey .
Volume of Digital payments via UPI stood at 2
billion (Oct ‘20) • Paytm stands a distant third behind Google Pay and
Digital payments value of $65 bn in 2019 is PhonePe in India's fast-growing UPI transactions
expected to grow at a CAGR of 20% till 2023.
The overall transaction value in the Indian
• The company is on a mission to bring half a billion
FinTech market is estimated to jump from
Indians into the mainstream economy through payments,
approximately $65 bn in 2019 to $140 bn in 2023.
commerce, banking, investments, and financial services.
 Attractiveness of Industry
Bargaining power of
suppliers - Low
● IT is the foundation of Fintech
● There are a lot of options such
as BBPS, Bharat QR, India
Stack etc
Bargaining power of
Consumers -
Moderate
● Switching cost is low
● Consumers are traditionally
conservative and prefer dealing
physically
Rivalry among Firms -
• High market size due to infrastructural
Limited
constraints, however increase in number
of players due to lucrative market
potential
• Scope for traditional players to harness
existing customer base
Threat of new
entrants - High
● Favourable government regulation
● Indian millennials rapidly adopting
digital financial services
● Lower real interest rates in the indian
economy
● They have a cost advantage over
incumbents
Threat of substitutes -
Moderate
● Traditional banking services and
alternative lending platforms
● Face to face consultancy services
are not expected to become
obsolete.