India’s Fintech industry enters the new year 2026 with a new set of goals. The industry focused on rapid expansion through digital payments and aggressive customer acquisition in the beginning, but the sector is now focusing more towards sustainable growth, compliance, and risk management.
“We're already seeing traditional boundaries blur- payments, lending, embedded finance, and banking capabilities are coming closer together as players look to build more integrated and efficient models. While payments continue to be powerful for driving access and engagement, long-term value will come from combining scale with operational efficiency across the financial stack,” said Ramki Gaddapati, Co-Founder, APAC CEO and Global CTO, Zeta.
India’s fintech industry is preparing to enter 2026 with a new Artificial intelligence (AI) emerging as a critical tool in this transformation, helping firms strengthen fraud detection, streamline regulatory processes, and enhance customer trust.
What does the data suggest?
According to Reserve Bank of India (RBI) data, digital payment volumes crossed 180 billion transactions in FY25, powered largely by the Unified Payments Interface (UPI) and embedded payment systems across commerce, mobility, and lending platforms.
Yet, regulators and industry leaders are increasingly concerned about operational risks and fraud. The RBI, along with the Bank for International Settlements (BIS), has highlighted vulnerabilities in digital payment ecosystems, urging fintechs to adopt stronger compliance frameworks. A
AI a major focus
Artificial intelligence is set to play a central role in this compliance-first era. Fintech firms are deploying AI to:
Detect and prevent fraudulent transactions in real time
Automate compliance reporting and monitoring
Personalize customer experiences while maintaining data security
Analyze risk patterns across lending and investment platforms
Moving beyond payments?
The sector is also diversifying beyond payments. Fintechs are moving deeper into credit, wealth management, and banking-related services, areas that demand stricter oversight. It allows firms to capture new revenue streams and broaden their customer base but exposes them to heightened regulatory scrutiny and the need for more robust governance structures.
“The DPDP Act is important because it protects personal data and builds trust. Without compliance, organisations face penalties, data breaches, customer loss, and reputational damage. Following the law improves credibility, strengthens security, and ensures responsible data handling for sustained business growth,” said Neha Abbad, co-founder, CyberSigma Consulting.
