India’s digital technology has transformed how people earn, save, and seek to grow their money. With smartphones and internet penetration increasing, people can open bank accounts, invest money and apply for loans, often within minutes. This financial revolution is enabled by the digital public infrastructure in India and is gradually moving towards the country’s remote regions too.
Strengthening digital public infrastructure
India’s digital infrastructure is referred to as the India Stack, a group of digital tools that work together to make life easier for citizens and businesses. Some components of this stack are:
- Aadhaar: A unique ID for every person that makes it easy to prove who you are, online or offline.
- UPI (Unified Payments Interface): A fast and simple way to send and receive money using just a phone.
- DigiLocker: A secure mobile app to store and share documents, like PAN card or driving licence.
- Account Aggregator: A system that allows people to securely share their financial data (with their consent) to access loans or investments.
How India’s digital infra enables financial inclusion
A key benefit of this digital system is the potential for financial inclusion. It means bringing everyone, from metro cities to villages, into the formal money system.
With these tools:
- A small shop owner can accept digital payments using UPI.
- A farmer can apply for a loan online with Aadhaar and income proof from DigiLocker.
- A student in a small town can open a zero-balance savings account digitally.
- Workers can access insurance and pension schemes directly.
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Role of APIs in enabling scalable fintech
An API (Application Programming Interface) ensures the smooth running of digital apps and platforms.
- It allows banks, fintechs, and government systems to work together.
- It enables verification of documents, processing of payments, checking credit scores, and more.
- It saves time, lowers costs, and minimises errors.
Thanks to APIs, fintech startups can build and scale quickly. This is why the India Stack fintech story has grown so fast. New companies can easily plug into the system and offer services like micro-loans and investment tools, even to remote users.
Impact on wealth access in Tier 2/3 India
Until recently, residents of remote and rural areas had limited access to financial products. They had to travel far to find a bank, had little knowledge about investing, and often kept savings in cash or gold.
The strengthening of India’s digital public infrastructure is gradually changing this:
- Mobile-first investing apps in regional languages offer mutual funds, digital gold, stocks and more.
- People can use Aadhaar to complete their e-KYC from homes, eliminating the need for physical paperwork or access to banks.
- Digital gold, UPI-based mutual fund platforms, and loan apps are making their way to semi-urban and rural areas.
As this infrastructure grows, more small sellers will be able participate in the formal economy with more potential for long-term financial inclusion and growth
Investment implications for the digital Bharat story
The shift toward a “Digital Bharat” can offer potential investment opportunities, for all these reasons:
- The number of digital-first investors is rising quickly.
- Mutual funds are seeing inflows from smaller towns, driven by affordable SIPs and easy access through apps.
- Fintech companies are targeting credit, insurance, and wealth-building products for this new segment.
- Investors are now looking at startups, financial firms, tech platforms, etc. that serve this new Bharat.
As more people use financial inclusion tech in India to manage their money better, it creates a strong base for broader financial participation and inclusion.
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A digital bridge to shared prosperity
The India Stack fintech movement is essentially about financial empowerment. With tools like UPI, Aadhaar, DigiLocker, and eKYC, access to financial tools is increasing and has the potential to reach millions more in the coming years.
However, while India’s digital infrastructure has expanded access, connectivity gaps, digital literacy, and income inequality can hinder true inclusion. The next phase lies in deepening participation—making tools not just available but usable.
For investors, this shift represents more than progress; it signals a structural megatrend. As fintechs, platforms, and policy frameworks evolve to serve underserved segments, the democratisation of financial access has the potential reshape consumption, entrepreneurship, and investment patterns over time—making digital inclusion a long-term theme in India’s growth story.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.
The content herein has been prepared on the basis of publicly available information believed to be reliable. However, Bajaj Finserv Asset Management Ltd. does not guarantee the accuracy of such information, assure its completeness or warrant such information will not be changed.The tax information (if any) in this article is based on current laws and is subject to change. Please consult a tax professional or refer to the latest regulations for up-to-date information.
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