India has successfully leveraged the smartphone revolution by exponentially improving the network infrastructure and democratizing digital services in the country. The newfound convenience and trust significantly helped the financial industry infuse trust into a vastly untapped market. While financial literacy is still a work in progress in India, we have come a long way. According to an ASSOCHAM-PwC report, India's Fintech market is expected to expand at a CAGR of 31 percent till 2025.

While this presents a huge opportunity, exploring the market will be equally challenging for the industry. For instance, according to a report by consultancy firm Redseer, insurance penetration in India is likely to climb significantly, with the market expected to reach a value of close to $ 222 billion by FY26, driven by the growing middle class and increasing internet connectivity. However, the insurance industry faces its own challenges, including rising medical inflation. Medical inflation has triggered many insurance companies to increase the premium on health insurance products this year. This could adversely affect the adoption curve.

The union government's vision has made a massive difference in the outcome. Faster financial inclusion, especially in rural India, will be a crucial aspect of the Indian government’s dream of becoming a $5 trillion economy. Indeed, Pradhan Mantri Jan Dhan Yojana (PMJDY) has been on a long stride towards this ambitious goal. PMJDY aims to democratize affordable access to financial services such as bank accounts, remittances, credit, insurance, and pensions. The program has been a considerable success, with 44.82 Crore banking accounts opened so far under the scheme with a cumulative balance of Rs. 160,839.87 crore. Today, 1.26 lakh Bank Mitras deliver branchless banking services in Sub-Service Areas under the scheme. It’s a great omen that the government shows the way and leads from the front.