Top 20 Fintech Startup Ideas to Consider in 2024

Fintech's explosive growth in recent years has been fueled by innovative startups disrupting traditional banking and payments.

Tech innovation, particularly the rise of financial technology (fintech), has transformed how we manage our finances. Fintech apps have become ubiquitous, offering unparalleled convenience for businesses and consumers alike.

This surge in fintech adoption is corroborated by McKinsey's report, which predicts revenues in the industry to grow three times faster than those in the traditional banking sector between 2023 and 2028.

This rapid growth signifies a significant shift in the financial services landscape, driven by the accessibility and affordability that fintech solutions provide.

As a result, exploring promising fintech startup ideas in 2024 presents a lucrative opportunity for entrepreneurs looking to capitalize on this dynamic market.

The Indian Fintech Market Overview

Fintech (Financial technology) combines finance and advanced technology to enhance and automate financial services.

According to a report by Mordor Intelligence, the Indian Fintech Market size is projected at USD 111.14 billion in 2024 and is expected to reach USD 421.48 billion by 2029, growing at a CAGR of 30.55% during the forecast period (2024-2029).

The Indian fintech industry has shown massive growth in the last few years. India is set to become a hub for many fintech startups gradually.

Several factors contribute to this phenomenal expansion. The Indian government's initiatives promoting financial digitization and a cashless economy have significantly shifted consumers towards digital financial solutions.

The influx of funding from domestic and international investors has also fueled the growth of digital payments.

Additionally, advancements in payment technologies using Artificial Intelligence (AI), blockchain, and the Internet of Things (IoT) are driving progress.

Interestingly, 80% of banking activities at leading Indian banks are conducted through digital channels. The country also boasts a robust remittance ecosystem with players like FXNetworks, InstaReM, and Remitly.

Many financial institutions foster innovation by establishing dedicated labs and partnering with Fintech firms to develop and launch new products.

The Reserve Bank of India plays a vital role by providing technology loans to promising fintech startup ideas. The government's support is further evident through the issuance of new banking licenses and increased Foreign Direct Investment (FDI) limits in the insurance sector.

This collaborative approach between government, regulators, and the private sector positions India as a fertile ground for Fintech innovation.

Must Read: How to Create a Payment Gateway in 2024? Benefits, Cost, Process & Challenges

Why You Should Invest in a Fintech Startup

The numbers above confirm the increasing demand for fintech projects, especially mobile applications like Paym, Google Pay, and Groww. These fintech applications have refashioned personal finance by making it easier than ever for individuals to manage their money.

If you’re searching for profitable business ideas in India, investing in fintech startup ideas can open up new business opportunities and have the potential to disrupt the traditional financial landscape. By creating inclusive and accessible financial services, these startups can help individuals and businesses nationwide.

On that note, here are a few more reasons why considering this sector to diversify and strengthen your investment or business portfolio is a sound strategy:

• Exponential Growth Potential: As the global financial services industry is enormous, fintech startups have yet to scratch the surface of this vast market. As more consumers become habitual to digital services, fintech companies have a tremendous opportunity to disrupt traditional institutions.
  
  
• Disruptive Technologies: Advanced technologies like AI, blockchain, and open banking APIs allow new finance products and services to reshape how people spend, invest, borrow, and move money. Fintech apps are at the forefront of turning these cutting-edge technologies into user-friendly applications.
  
  
• Tech-Savvy Generation: The sector appeals to young generations who prefer managing finance through mobile devices. That’s why India's young demographic presents a perfect target audience for mobile-first and user-friendly Fintech solutions.

These reasons highlight that this is a perfect time to start building and launching a fintech app to thrive. The fintech industry allows investors to get in early in fast-growing startups that can become the next unicorns.

Top 20 Profitable Fintech Startup Ideas

Fintech is on the rise, and almost every finance startup is growing with the help of a mobile application. Let’s take a closer look at the top 20 fintech startup ideas in India that hold the maximum potential:

1. Digital Banking

It is among the most popular and lucrative fintech ideas you may consider when launching a prosperous business.

Because smartphones, computers, the Internet, and artificial intelligence (AI) are becoming increasingly common, there has been a remarkable demand for digital banking services in recent years.

The interest in investing in digital banking apps has also increased dramatically due to these services.

How consumers use financial services and engage with their money has drastically changed in the last several years. Users can now transfer money and use ATMs without visiting local banks.

From the convenience of their homes, they can take all the benefits of digital banking. With a few taps on their devices, they can easily transfer money, receive money, invest, open accounts and deposit money, ban cards, add beneficiaries, and much more.

2. P2P Payment Solution

One of the most popular and well-liked fintech startup ideas is creating a peer-to-peer (P2P) payment app, which makes it simple for users to transfer money to friends, family, and merchants.

P2P payment applications such as Google Pay allow users to instantaneously transfer funds across bank accounts, even if they’re registered with separate payment systems and institutions.

These apps eliminate the need for using middlemen or paying commissions for any transactions they carry out.

Moreover, these fintech apps optimize consumer experience, improve risk management, and expedite point-of-sale processing by using cutting-edge technologies such as NFC and face and voice biometrics.

Recommended Read: A Complete Guide on How to Develop a Secure and Feature-Rich UPI Payment App in 2024

3. Personal Finance Management App

The personal money management app is another excellent financial business idea and trending finance topic that introduced efficiency into this market.

These fintech apps are becoming more popular as people become more aware of their income and savings, encouraging investors and startups to look ahead and use financial ideas for their ventures.

With an expected CAGR of 24% from 2024 to 2030, the personal finance apps market was worth $101 billion in 2023 and is further predicted to grow to $450.8 billion by 2030.

With the help of these new fintech startups in India, users can track their income and expenses in real time and organize them into categories to gain more insight into how to handle their money wisely.

Along with automatic payment reminders, these personal financial management apps allow users to connect all bank and credit card accounts and update the data.

4. Robo Advisory Fintech Solution

Robo-advising fintech applications are great fintech startup ideas for entrepreneurs looking for top business ideas. One of the tried-and-true methods of fintech is drawing in millennials.

Thanks to this machine-learning-powered software, users can receive the best possible personalized and forward-looking financial advice at reduced prices.

They can also assess their spending and assets to increase their after-tax return, which they can then review with a tax preparation software such as TurboTax. Furthermore, they are simplifying the process with little or no human intervention.

The market for robot advisors is expected to reach 3.270 million users by 2028. Because of the mobile application, robo-advisory firms stand to benefit greatly from investing in this industry.

Robo-advisors are positioned as an appealing choice since they offer automated investment management, personalized portfolio recommendations, and lower fees than traditional financial advisors.

5. Loan Lending Apps

An app for lending loans, also known as a P2P lending app, is a popular startup idea in the fintech industry. The app serves as a platform where lenders and borrowers can connect and fulfill each other’s needs without involving an intermediary (financial institution).

Loan lending applications allow borrowers to set their desired loan rates while also allowing lenders to negotiate and offer funds at competitive rates. And by starting this fintech app, entrepreneurs can easily attract more customers or borrowers.

6. Subscription Management Apps

Subscription management applications are designed to help users keep track of their various subscriptions and manage them more effectively.

The app allows users to input all their subscription services, including Netflix, Spotify, or Amazon Prime as well as subscription boxes, software subscriptions, gym memberships, and more.

Users can then see when each subscription payment is due and how much it costs. The subscription fintech app can send reminders before payment dates to avoid missed payments and potential service interruptions.

The app can provide insights into how often consumers use each subscription service. This could help users find out subscriptions they’re not using enough to justify the cost.

In short, these fintech mobile applications provide a clear overview of all your subscriptions and upcoming bills. This way you'll always be aware of the amount of money spent on subscriptions, which helps you to control your monthly spending.

7. Stock Trading App

When it comes to trending fintech startup ideas in India, developing a stock trading app is a strategic move that can help you establish your business in the fintech industry.

These days, users are becoming more attentive to platforms that understand shares, stocks, forex, and funds, allowing them to invest efficiently.

They focus on using applications that gather investment data from various sources and use it to calculate asset valuations and make informed decisions accurately.

As we dive deeper into stock trading apps, it’s interesting to note that the younger generation aged 20 to 35, has welcomed these platforms wholeheartedly.

According to a research by Moneycontrol, the number of demat accounts increased to 2.7 crore in August 2023, a surge of 26% every year, mostly because of attractive returns from equity markets, and the ease of account opening process.

Therefore, the need for user-friendly stock trading applications will likely flourish, making a perfect opportunity for anyone who wants to become a part of the USD 111.14 billion market.

8. RegTech App

RegTech apps are highly considered fantastic fintech business ideas for emerging institutions in the industry.

RegTech includes using information technology to effectively manage regulatory processes in the financial industry and ensure compliance with global regulatory and compliance standards.

By building this platform, you can help businesses streamline a significant portion of their operations, such as customer identity verification, report generation and submission, transaction monitoring and reporting, and improving customer retention rates, among other benefits.

9. Digital Wallets

We all realize the need for digital wallets such as PhonePe, Google Pay, and Paypal to find a convenient alternative to carrying physical wallets or credit/debit cards.

As a result, the digital wallet market has become one of the trending finance topics and experiencing exponential growth. These apps allow users to easily transition with just a few clicks on their smartphones while also receiving attractive discounts and offers as rewards.

Grand View Research stated that the global digital wallet market had a valuation of $7.42 billion in 2022 and is expected to experience a compound annual growth rate (CAGR) of 28.3% from 2023 to 2030.

Thus, as an entrepreneur, you should consider investing in digital wallets as a strategic move to capitalize on the growing market. Digital wallets, with their ability to proceed with transactions quickly and added benefits, offer a valuable opportunity to gain a competitive edge.

Read More: What is a Mobile Wallet & Why You Should Use it? Everything Explained

10. Fintech Blockchain

With the increasing influence of blockchain technology in the fintech industry, implementing blockchain into a financial business can be one of the most profitable fintech startup ideas.

Today, several fintech businesses are using this technology to provide a wide range of options to their users. Here are a few examples that highlight the potential of blockchain in finance.

• Secure Cryptocurrency Transactions: Imagine a safe platform for buying and selling cryptocurrencies powered by blockchain's tamper-proof ledger system. This eliminates the need for intermediaries, increases security, and lowers transaction fees.
  
  
• Streamlined Trade Finance: Blockchain can streamline trade finance by ensuring transparency and immutability.
  
  
• Decentralized Finance (DeFi): Decentralized Autonomous Organizations (DAOs) are a novel concept blockchain enables. These are self-governing communities where members vote on decisions and participate in financial activities according to pre-programmed rules. This opens doors for innovative economic models and community-driven investment opportunities.

These examples showcase how blockchain can enhance security, transparency, and efficiency in various Fintech projects, and why you should consider them as a profitable business idea.

11. Insuretech Solution

Insurance and banking have always been closely connected in finance, working together in many cases. Now that finance has changed into ‘fintech,’ insurance has also introduced its advanced version called ‘Insurtech.’

Building an insurance mobile app can be a powerful tool to expand your customer base and grow your business.

By integrating cutting-edge technologies such as AI, IoT, Blockchain, Open API, and Machine learning, you can provide exceptional customer experience.

These technologies will help you analyze a large amount of user data, monitor market trends, comprehend user emotions and needs, provide personalized yet efficient policy comparison options, mitigate risks, and more without needing a third-party insurance broker.

Due to these factors, the global insurance market is expected to grow from 2023 to 2030, with a compound annual growth rate of 52.7%. In 2022, the market was valued at $5.45 billion.

These numbers speak for themselves as to why building insurance apps in 2024 will be profitable fintech startup ideas.

12. Crypto Exchange Platform

Developing crypto exchange platforms is a highly promising finance startup idea to pursue.

These platforms allow consumers to access the decentralized market by exchanging cryptocurrencies for assets such as fiat money or other digital currencies.

With these apps, users can trade one cryptocurrency for another, receive crypto tokens in exchange for fiat money, and engage in buying or selling their crypto coins.

While they’re enjoying the advantages such as transparency, reduced fees, enhanced security, and expedited processing.

13. Bill Reminder App

As the name suggests, a bill reminder app can be used for individuals who often struggle to remember to pay their bills promptly. It helps to keep track of vicarious bills such as water, electricity, phone, credit card, and more.

Developing an application that sends timely reminders for bill due dates can be an undeniably straightforward yet strong fintech idea. Alternatively, you can also incorporate a reminder feature into your other financial app ideas.

14. Financial Record Maintainance System

Managing payment receipts, tax invoices, and other financial records is quite a challenge for many people. Therefore, building a financial record maintenance system can be a lucrative fintech business venture in India to simply financial record keeping for busy individuals.

15. E-mortgage Apps

Like other fintech startup ideas in this list, this business idea gained significant popularity following the COVID-19 pandemic. In the past, obtaining a mortgage was a quite challenging task for individuals.

Today, electronic loan apps have streamlined the loan approval and disbursement process, making it easier for applicants to obtain contactless loans quickly and effortlessly.

16. Crowdfunding Solutions

Crowdfunding is becoming increasingly popular as a highly successful fintech startup concept for entrepreneurs, offering a viable alternative funding approach.

These solutions help new and existing firms secure finance by working with a variety of contributors and venture investors.

There are various fundraising platforms, each with its own set of benefits and specializations. Kickstarter, Indiegogo, and GoFundMe have established themselves as popular and versatile fundraising platforms with a large user base.

Based on forecasted data, the transaction value is likely to expand at a stable annual pace of 1.43% between 2024 and 2028. This growth is expected to result in a total value of $1.27 billion by 2028.

17. Payday Loan App

Another interesting fintech application idea that offers potential for investment and financial gain is the payday loan application.

With this app, you can offer platform users a specific sum as a loan to help them in times of crisis, such as bill payments, hospital expenses, or EMIs.

Individuals can easily input their work information and link their bank account. The app tracks working hours, allowing individuals to withdraw funds as needed.

Aside from this, the payday loan app can also automatically deduct the cash from the user’s accounts once they receive their paycheck.

18. Financial Education Platform

This fintech business concept is a complete online resource that provides users with the knowledge and skills they need to make educated financial decisions.

The financial education platform addresses important topics like as budgeting, saving, investing, debt management, credit knowledge, and future planning, including retirement and estate planning, using a combination of interactive courses, tutorials, articles, and tools.

You Might Also Like: How AI Will Impact the Education System?

19. Digital Mortage

A digital mortgage app transforms the traditional mortgage application process by providing a streamlined and efficient online experience for borrowers and lenders alike.

By developing this mobile app, you can allow borrowers to complete the entire mortgage application process digitally, from pre-qualification to closing, without the need for extensive paperwork or in-person meetings.

20. AI-Assisted Investment Assistant

If you’re intrigued by the potential artificial intelligence and machine learning hold and want to integrate them into your fintech startup, an AI-powered investment assistant might be an excellent idea.

AI-assisted investment assistant apps provide users with personalized investment advice, portfolio management, and market insights.

Now that you know the top fintech startup ideas you can work on, you might be wondering where to start one. Let’s explore the step-by-step process of starting a successful fintech business in India.

How to Start a Fintech Business in India

Before we dive into the process of starting a new business in the fintech industry, it’s important to note that establishing a successful fintech startup requires careful planning and seamless execution of the same.

With that said, let’s discover how you can start a fintech startup, covering considerations and best practices that will take you on the path to success.

1.  Define Your Niche

Fintech is a big realm to explore. Aiming at the entire finance market at once can be challenging. So, it’s advisable to choose a specific niche among the different subcategories of the market, which are as follows:

• Payment and international money transfer
  
  

• Mobile banking
  
  

• Personal finance management 
  
  

• Insuretech
  
  

• Trading and lending
  
  

• Crowdfunding and
  
  

• Data analysis and financial decision-making.

Once you’ve selected a niche, conduct thorough market research to discover the particular audience your product/service will target. It will help you launch your top fintech business locally and then enter the global market with better success ratios.

2. Learn About Compliances

Fintech is a highly regulated industry. Therefore one must be familiar with all the specifications and characteristics of this highly complex realm, which includes legal regulations, limitations, laws, and requirements.

Failing to comply with regulations can lead to severe penalties, including hefty fines and reputational damage.

Hence, you must invest time and resources into thoroughly learning and following compliance requirements from the outset of their operations.

Moreover, establishing robust compliance processes and procedures can build trust and credibility among customers and stakeholders, ultimately contributing to long-term success in the industry.

Explore More: How to Build Digital Trust in 2024? Everything You Need to Know in One Place

3.  Find Your Startup USP

Due to the ever-increasing fintech startup ideas, the fintech market is becoming competitive day by day. In such a scenario, you must come up with a new finance app development idea to ensure it will beat the existing ones.

You need to ensure your app idea is not generic and offers better functionalities than existing ones, which could be the brand’s unique selling point (USP).

After finding the startup USP, you can also do a competitive market analysis while doing customer surveys and reviewing different reports.

This will help you find the common success factor among all the top players, their business and revenue model, and the pain points they fail to see, thus refining your idea.

4.  Raise Funding

While you might have some savings, fundraising methods like bootstrapping, crowdfunding, venture capital, and angel investment are prevalent in the market. So, use these methods to raise enough money to support your fintech app ideas financially.

5. Know the Technical Challenges

Like any other tech business venture, a fintech startup comes with a set of challenges, especially those linked to the transformative impact of digital technologies. For instance:

• Cybersecurity
  
  

• Big data usage
  
  

• Integration of AI and Blockchain

So, it is best to gather comprehensive information about these challenges and hire the best financial software development services to address them efficiently.

6. Hire the Right Fintech App Development Company

No matter how much potential your app idea has, it won’t survive longer if you don’t have the right team of fintech app developers.

Thus, you must collaborate with a reputed fintech app development company to realize your vision.

A team of app developers with a proven track record of fintech app development can help you choose the right technology stack, revamp your business strategies, overcome hidden barriers, and scale up your fintech app idea.

7. Launch an MVP

When starting a new fintech business, the last step is to feel not tempted to develop a full-fledged mobile application. Instead, look ahead and test the water with a Minimal Viable Product (MVP) first. An MVP allows you to enter the market cost-effectively, collect user feedback, and help raise funding.

Additionally, an MVP allows startups to expedite their time-to-market. You can streamline development by focusing on essential features and functionalities, accelerating the launch timeline.

This rapid deployment will help you seize early market opportunities and allow quicker iteration and improvement based on user insights.

How Arramton can Help you Build a Successful Fintech Platform

Now that you know the top fintech startup ideas that you can start in India, it is time you partner with a reputable fintech app development company like Arramton Infotech to turn your idea into a feature-rich and profitable application.

Our team of app developers brings a wealth of experience and technical competence to build custom fintech solutions for startups and enterprises.

We work closely with each of our clients to understand their business objectives and develop a well-aligned application.

Moreover, our comprehensive knowledge of cutting-edge technologies and deep understanding of the fintech industry has helped many entrepreneurs with successful projects.

So don't let your Fintech idea stay on hold. Talk to our team and get the support you need to get started now!

Frequently Asked Questions

Q. Which are the best fintech startups in India?

Ans. The best fintech startups in India include payment solutions like Paytm, Razorpay, and PhonePe, investment platforms like Zerodha, and insurance aggregators like PolicyBazaar.

Q. How to start a fintech startup in India?

Ans. To start a fintech startup in India, begin with researching the market, identify a gap, and ensure regulatory compliance, and then hire a team of app developers and secure funding.

Q. Are fintech startups profitable?

Ans. Yes, many types of fintech startups are profitable! They can generate revenue through transaction fees, subscriptions, or premium services.

Q. Is Zerodha a fintech startup?

Ans. While established, Zerodha is considered a leading fintech company offering online investment and trading platforms.

Q. How does fintech earn money?

Ans. Fintech companies can earn money through transaction fees (payments), subscriptions (investment platforms), or interest earned on managed funds.'

Q. Does fintech require an RBI license?

Ans. The requirement for an RBI license depends on the specific activity. Payment gateways and wallets typically require RBI licenses, while some other areas may not.

Q. What is the failure rate of fintech startups?

Ans. The failure rate of fintech startups is 75%. As said, three out of four fintech startups supported by investors don't make it. This demonstrates the challenges these businesses face to find success in the competitive landscape.

Q. How many fintech startups are there in India?

Ans. Estimates suggest there are over 2,000 fintech companies in India, operating in various sectors within the financial landscape.