India’s BFSI boom: How fintech is transforming the financial landscape

India’s financial world is undergoing a transformation of epic proportions.

The BFSI sector—short for Banking, Financial Services, and Insurance—is on fire. According to a report by Motilal Oswal, the market capitalisation of this sector has soared over 50 times in just 20 years. In 2005, it stood at ₹1.8 trillion. Fast forward to 2025, and it’s projected to hit a jaw-dropping ₹91 trillion—a CAGR of 22%.

But here’s the real disruption: traditional banks are losing ground. Once dominating 85% of the market, their share has dropped to just 57%. The balance? It’s being snapped up by NBFCs and fintech firms, who are leveraging cutting-edge technology to rewrite the rules of finance.

The fintech revolution, which barely existed before 2015, now boasts a market cap of over ₹12 trillion. With tools like digital wallets, instant loan platforms, UPI, and robo-advisors, these players have taken financial services to the masses—many of whom had never interacted with a bank before.

It’s no longer just about opening savings accounts or buying insurance. Today’s consumers are investing with a swipe, borrowing in minutes, and managing their entire financial lives from their smartphones.

This tech-powered shift is more than a convenience—it’s a financial awakening. And it’s changing the way India saves, borrows, and invests—forever.