New Delhi, June 27 (IANS): The digital lending market in India grew at 33 per cent Compound Annual Growth Rate (CAGR) from FY19 till FY23 -- reaching Rs 2,905 thousand crore in FY23 from Rs 913 thousand crore in FY19, a report showed on Thursday.

In the same time period, digital transactions surged by 44 per cent (year-on-year) -- from Rs 46,616 crore to Rs 92,267 crore, according to the report by Praxis Global Alliance.

“India is witnessing a boom in fintech startups in the country, amid which various challenges have risen providing overall growth opportunities for the sector,” said Madhur Singhal, Managing Partner, Financial Services, Praxis Global Alliance.

Disbursement amount by fintech in India has grown at 41 per cent CAGR from FY21 to FY23.

A new roadmap for fintech in India is emerging, addressing untapped sectors, fostering partnerships with traditional financial institutions, and emphasising governance and compliance.

According to the report, fintech lending players have leveraged AI/ML technologies to incorporate advanced underwriting models, enabling faster and more accurate credit assessment.

“This next generation of fintech, referred to as ‘fintech reloaded’, is positioned to bring significant changes to the financial services industry. Also it shows how rapid adoption of UPI by fintech has revolutionised peer-to-peer payments in the country,” the report noted.