AI, embedded finance & inclusion lead India fintech trends

The India FinTech Forum has released its Fintech Trends 2026 report, outlining the major developments anticipated for the sector as it prepares to celebrate a decade of engagement across banking and technology. The trends span agentic artificial intelligence (AI), embedded finance, inclusive financial innovation, cyber resilience, and the democratisation of wealth through alternative asset classes and cross-border investment.

Agentic AI adoption

The report finds that 2025 could mark a crucial year for agentic AI within the sector, as it evolves from conceptual discussions to operational deployment. Agentic AI platforms are being integrated across business functions, with applications in automation, compliance, and customer service. Companies such as AutomationEdge, O2V, and OnFinance AI are deploying specialised AI agents to handle processes in banking, risk management, and compliance. Products like ComplianceOS and AI-powered workflow tools are emerging in response to growing demand.

"As we get ready to celebrate a decade of innovation in fintech, the key trends highlighted and the startups that are leading the disruption have shown practical innovation that serves customers, strengthening trust, and scaling with discipline. We see a balance of AI powered workflows, secure infrastructure, and inclusive models that can travel across markets," said Nipa Dutta, Chief Executive Officer, India FinTech Forum.

Embedded finance evolution

Embedded finance continues to expand beyond payments, with growing integration into lifestyle, healthcare, and travel platforms. New entrants, such as OnArrival, Riskcovry, and SaveIN, are developing services designed to make finance a seamless part of daily digital interactions. Riskcovry provides infrastructure for insurance distribution, while SaveIN enables healthcare providers to offer instant, no-cost equated monthly instalments.

RocketPay is automating credit collection for merchants by utilising electronic mandates and UPI AutoPay, with a focus on driving business growth in underserved markets.

Inclusive wealth building

Retail and mass affluent investors are participating in an increasingly expanded wealth management landscape, with a growing interest in fractional ownership and borderless investing. Several platforms are facilitating new routes to wealth creation and access to alternative assets. Altcase offers private-market investment opportunities in high-growth companies; RealX enables fractional property ownership; and Rupeeflo allows individuals to manage global assets from India. AssetPlus empowers distributors with scalable wealth management tools, while StockGro and Volt support advisory and instant credit services, respectively.

Cyber resilience focus

With the rise in digital activity, financial technology companies have intensified their focus on embedding robust risk and compliance processes. Companies including Drona Pay, Tutelar, Mitigata, and Fyno have introduced AI-driven platforms targeting real-time threat detection, compliance automation, and cyber insurance. These platforms enable financial institutions to proactively manage risks as digital transactions increase in volume and complexity.

Fintech for inclusion

The report highlights the growth of fintech aimed at underserved demographics and rural communities, referred to as 'Bharat'. These initiatives focus on digital inclusion, entrepreneurship, and microenterprise development. Eko Bharat centres its efforts on empowering women entrepreneurs. FamApp offers payment solutions for users aged 11 and over. Navanc applies AI to property-backed lending, while Sahi and Verto support trading and cross-border business services.

"As we get ready to celebrate a decade of innovation in fintech, the key trends highlighted and the startups that are leading the disruption have shown practical innovation that serves customers, strengthening trust, and scaling with discipline. We see a balance of AI powered workflows, secure infrastructure, and inclusive models that can travel across markets," said Dutta