Foreign investors are rapidly increasing their presence in India’s financial sector, driven by the country’s success in converting millions of unbanked citizens into a data-rich market. A report by Sunday Independent urged African nations to follow a similar model for inclusive digital growth.
India’s digitally-driven transformation has attracted major players like Citigroup, Barclays, and MUFG, despite challenges such as trade headwinds and account dormancy. With 89% adult account penetration and 25% dormancy, investors are leveraging fintech innovations and data-based credit scoring to reach new consumers.
The shift from a cash-based economy to a digital ecosystem has unlocked economic potential across sectors. Every transaction now generates valuable data, helping lenders design microloans, insurance, and savings products for low-income users through platforms like Paytm and PhonePe using UPI technology.
The report highlighted that India’s inclusive digitisation has reduced transaction costs and boosted financial usage, leading to over $50 billion in FDI inflows during 2024–25. The publication suggested Africa could replicate India’s success by investing in digital infrastructure and using innovation to reduce account inactivity.
