India's fintech sector is significantly increasing investment in artificial intelligence despite limited measurable financial results. According to PwC India's latest report titled 'Fit for Future: FinTech 2030', 84% of fintech respondents have yet to see measurable, AI-driven results in their financial statements. The survey, conducted among fintech founders, industry leaders and ecosystem participants, found that fintech leaders continue to invest in AI based on its strategic importance rather than proven financial returns. As reported by PwC India, this represents a clear shift in how the sector approaches AI adoption and its business impact, with the industry expressing optimism in expectations while resourcing itself for caution. The survey reveals a clear split between what the industry expects and what it is actually preparing for, with 74% of respondents expecting an enabling capital and regulatory climate by 2030, but 71% actively building for Disciplined Consolidation involving tighter capital and stronger governance requirements.
The survey identified 48% of respondents as identifying proprietary intelligence as their top strategic bet for the future. Customer experience enhancement emerged as the leading expected driver of AI agent adoption over the next three to five years, cited by 30% of respondents, followed by cost reduction and productivity gains at 22%. According to PwC India, this strategic focus on AI reflects the sector's belief in its long-term potential despite current financial uncertainties. The survey found that fintech leaders are making AI investments based on strategic importance rather than immediate financial returns, with the industry preparing for consolidation, tighter capital and tougher governance requirements. As noted by PwC India, Rajan Pental, Leader, Financial Services, emphasized that "fintech leaders clearly want to believe in an enabling capital environment and rapid AI adoption, but very few are confident enough in that outcome to bet their business on it. Instead, they are preparing for consolidation, tighter capital and tougher governance."
While 74% of respondents expect an enabling capital and regulatory climate by 2030, 71% said they are actively building for Disciplined Consolidation, involving tighter capital and stronger governance requirements. As reported by PwC India, Rajan Pental, Leader, Financial Services, noted that "fintech leaders clearly want to believe in an enabling capital environment and rapid AI adoption, but very few are confident enough in that outcome to bet their business on it. Instead, they are preparing for consolidation, tighter capital and tougher governance. That is our survey's clearest signal about how the industry is actually thinking about the next four years." The survey indicates that the industry is preparing for a more challenging operating environment in the coming years, with consolidation being a key consideration for strategic planning. Commenting on the findings, Vivek Belgavi, Partner and Leader, Financial Services Advisory, noted that "India's fintech story over the last decade was built on formalisation, digital onboarding, distribution at scale and growth capital. The next decade will run on a different playbook: programmable digital infrastructure, proprietary intelligence, orchestration over distribution, and trust built by design. The winners will not simply be those who scale fastest, but those who build the most resilient and differentiated institutions."
Customer trust and adoption were identified as the biggest barrier to scaling agentic payments, cited by 41% of respondents, followed by fraud, security and risk management at 33%. According to the survey, 93% of respondents said customers would allow an AI agent to access their financial data for better recommendations, however, only 7% said customers would continue using an AI agent if it slightly increased fraud risk, even if it saved time. The survey found no clear consensus on who should bear responsibility if an AI agent makes an incorrect financial transaction, with no single answer receiving support from even a third of respondents, reflecting how unsettled accountability remains in agentic finance. Trust and fraud, not regulation, are seen as the biggest barriers to scaling agentic AI, with regulatory uncertainty accounting for just 11% of concerns. A recent report by Infosys and HfS Research highlighted that only 16% of enterprises report enterprise-wide deployment of agentic AI, with most advanced agents performing simple, rules-based tasks rather than autonomous operations.
Embedded lending was identified by 77% of respondents as a durable value pool for 2030, 50 percentage points ahead of the next-ranked category. According to PwC India, Vivek Belgavi, Partner and Leader, Financial Services Advisory, noted that "India's fintech story over the last decade was built on formalisation, digital onboarding, distribution at scale and growth capital. The next decade will run on a different playbook: programmable digital infrastructure, proprietary intelligence, orchestration over distribution, and trust built by design. The winners will not simply be those who scale fastest, but those who build the most resilient and differentiated institutions." The survey found that trust and transparency were rated the most important attribute for the new-age, digitally native consumer by 55% of respondents, far ahead of lowest cost (10%), though designing for consumer trust ranked last among strategic priorities for the next 18 months. Consumer payments and UPI-adjacent models were seen as the most saturated or overhyped business models today.
