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Fintech & Insurtech

Advantage Tamil Nadu

  • Strong IT Infrastructure and Ecosystem: Tamil Nadu is home to one of the largest and most developed IT ecosystems in India, with a strong presence of global IT companies, Startups and academic institutions. It also has a well-developed Internet infrastructure, with the highest teledensity in the country.
  • Large and Growing Talent Pool: Tamil Nadu has a large and growing pool of skilled IT and financial professionals. The State is home to several top-ranked engineering and management colleges and produces a large number of graduates in the relevant fields each year.
  • Government Support: The Tamil Nadu government is supportive of the FinTech and InsurTech sectors and offers several incentives to attract and retain companies. These incentives include tax breaks, subsidies and access to government facilities.
  • Growing Consumer Base: Tamil Nadu has a large and growing consumer base, with a high adoption rate of digital technologies. This presents a significant opportunity for FinTech and InsurTech companies to offer their products and services to a growing number of customers.
  • Strong Presence of Banks and Financial Institutions: Tamil Nadu is home to several leading banks and financial institutions, including several public sector banks, private sector banks and foreign banks. This provides FinTech and InsurTech companies with a strong partner base to work with.
  • Growing Insurance Market: The insurance market in Tamil Nadu is growing rapidly, driven by factors such as increasing urbanisation and rising disposable incomes. This presents a significant opportunity for InsurTech companies to offer their products and services to a growing number of customers.
  • Favourable Regulatory Environment: The Union Government has taken several steps to promote the growth of the FinTech and InsurTech sectors. They include the launch of the Regulatory Sandbox and the Digital India initiative.
StartupTN-Team-Nagathilagam

Sector Incharge

Nagathilagam M

thilaga@startuptn.in

6383473862

Fintech Sector Map

Introduction

Introduction

FinTech and InsurTech are two rapidly growing sectors that are transforming the financial services industry. FinTech refers to the use of technology to improve financial products and services. InsurTech refers to the use of technology to improve insurance products and services. FinTech and InsurTech companies are using technology to make financial services more accessible, affordable and convenient for consumers. They are also developing new products and services that meet the needs of emerging markets and underserved populations.

Market Potential

The global FinTech market is expected to reach $33.2 trillion by 2028. The global InsurTech market is expected to reach $1.0 trillion by 2027. The Indian FinTech market is also growing rapidly. It is expected to reach $100 billion by 2025. The Indian InsurTech market is expected to touch $2.5 billion by 2025.

Tamil Nadu Scenario

Tamil Nadu is one of the leading FinTech and InsurTech hubs in India. The State is home to over 100 FinTech Startups and over 20 InsurTech Startups. It also has a strong presence of traditional financial institutions, such as banks and insurance companies. This provides FinTech and InsurTech companies with a strong partner base to work with. The Tamil Nadu Government is supportive of the FinTech and InsurTech sectors. The government has launched several initiatives to promote the growth of these sectors, such as the Tamil Nadu FinTech Policy 2021.

Future Roadmap

The future of the FinTech and InsurTech sectors in Tamil Nadu is bright. The State has several strengths that will help it to continue to grow in these sectors. They include:

  • Strong IT infrastructure and ecosystem
  • Large and growing talent pool
  • Government support
  • Growing consumer base

The Tamil Nadu Government is committed to making the State a global hub for FinTech and InsurTech. The government has announced a number of initiatives to support the growth of these sectors, such as the development of a FinTech city in Chennai.

Initiatives

Initiatives

Union Government

Union Budget 2023

The Union Budget 2023 announced several measures to boost the digital economy and encourage innovation in the FinTech and InsurTech sectors. Some of them are:

  • Expanding the scope of DigiLocker services to include insurance policies, pension accounts, mutual funds and other financial documents.
  • Allocating ₹1,500 crore for a scheme to promote digital payments and incentivize FinTech start-ups.
  • Setting up a Fintech Development Fund of ₹1,000 crore under the National Bank for Agriculture and Rural Development to support FinTech solutions for agriculture and rural development.
  • Launch of a National Monetisation Pipeline to monetise public sector assets such as roads, railways, airports, power transmission lines, gas pipelines, etc. This will create opportunities for FinTech and InsurTech firms to provide innovative financing and insurance solutions.

Reserve Bank of India Regulations and Facilitations

The Reserve Bank of India has taken several steps to regulate and facilitate the growth of the FinTech and InsurTech sectors. Some of them are:

  • Guidelines for licensing of small finance banks, payments banks, peer-to-peer lending platforms, account aggregators, etc. to promote financial inclusion and innovation.
  • A regulatory sandbox framework for FinTech firms to test their products and services in a controlled environment with limited regulatory relaxations.
  • An Innovation Hub to support ideation and incubation of new capabilities that can be leveraged to deepen financial inclusion and enhance the efficiency and security of the financial system.
  • An Inter-Regulatory Technical Group on FinTech and Digital Banking to coordinate with other regulators such as SEBI, IRDAI, PFRDA, etc. on FinTech and InsurTech-related issues.

State Government

Tamil Nadu FinTech Policy 2021

This policy aims to transform the State into a leading global destination for FinTech firms by 2025. It provides various incentives and benefits for FinTech and InsurTech firms, such as reimbursement of operational expenses, SGST refund, training and marketing support, funding avenues, regulatory sandbox, etc. The policy also seeks to promote regionally balanced development by providing higher incentives for firms in Tier II and III regions.

Resources

Resources

  • FinTech Associations: There are various associations and networks that promote and support the FinTech industry in India, such as the Internet and Mobile Association of India (IAMAI), the FinTech Association for Consumer Empowerment (FACE), the FinTech Convergence Council (FCC), the India FinTech Forum (IFF), and the Payments Council of India (PCI).
  • FinTech Accelerators and Incubators: There are several programmes and platforms that provide mentorship, funding and networking opportunities to FinTech Startups in India, such as PayPal Incubator, YES FINTECH Accelerator, Axis Bank Thought Factory, HDFC Bank Digital Innovation Summit and ICICI Bank Innovation Lab.
  • FinTech Events and Conferences: There are various events and conferences that showcase and discuss the latest trends and developments in the FinTech industry in India, such as India Fintech Awards (IFTA), India Fintech Summit (IFS), India Fintech Day (IFD), Global Fintech Fest (GFF) and Fintech Storm India Summit.
  • FinTech News and Magazines: There are many sources of information and analysis on the FinTech industry in India, such as Fintech Asia, Fintech Times, Fintech News Network, Fintech Circle and Fintech Futures.
  • InsurTech Associations: There are some associations and networks that promote and support the InsurTech industry in India, such as the Insurtech Forum India (IFI), the Insurtech Community of India (ICI) and the Insurtech Foundation of India (IFI).
  • InsurTech Accelerators and Incubators: There are programmes and platforms to provide mentorship, funding and networking opportunities to InsurTech Startups in India, such as the Swiss Re Insurtech Accelerator, HDFC Ergo Insurtech Accelerator, Future Generali Insurtech Incubator and ICICI Lombard Insurtech Innovation Lab.
  • InsurTech Events and Conferences: There are events and conferences that showcase and discuss the latest trends and developments in the InsurTech industry, such as the Insurtech India Summit, Insurtech Asia Summit, Insurtech World Forum and Insurtech Connect Asia.
  • InsurTech News and Magazines: There are several sources of information and analysis on the InsurTech industry, such as the Insurance Technology Magazine, Insurance CIO Outlook Magazine, Insurance Business Magazine and Insurance Post Magazine.