Budget 2024 Expectations: What fintech and digital lending industry expects this year?

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intech and digital lending industry is one of the fastest-growing segments in the financial sector, with a projected market size of $720 billion by 2030. The gold loan industry along with India's fintech and digital lending industry has been providing innovative and accessible credit solutions to millions of consumers and businesses, especially in rural and underserved areas, through digital platforms, aggregator platforms, and technologies. Within the fintech segment, the gold loan industry exhibits substantial growth prospects.

As per a Systematix report, the organised gold loan market witnessed substantial expansion, reaching 72,289.15 million USD in FY22, and subsequently rising to an estimated 84,337.34 million USD in FY23 (estimates based on the Bank and NBFCs Gold loan AUM till Mar'23). However, the industry encounters challenges like regulatory uncertainty, data privacy, cyber fraud, and customer awareness. Consequently, it anticipates significant measures in the interim Union Budget, 2024.

The fintech and digital lending industry has two key expectations from the Budget. Firstly, a clear regulatory framework is sought for legal recognition, licensing, and supervision, ensuring a level playing field with traditional lenders and building trust among customers and investors. Secondly, the industry anticipates a favourable tax framework with incentives and exemptions tailored for startups, aiming to lower capital costs and enhance profitability.