What does fintech innovation 2.0 mean for investors?

It marks a shift to disciplined growth. Expect more spend on AI governance, data rights, and infrastructure that earns recurring revenue. Investors should prioritise platforms embedded in bank and merchant workflows, with clear audit trails, stable cohorts, and low churn. Revenue quality, not user counts, becomes the main screen.

How does AI governance change returns in fintech?

Good governance raises win rates in bank procurement and cuts model failure costs. It can improve margins by reducing fraud losses and rework. Vendors with explainability, monitoring, and documented controls tend to command better pricing and longer contracts, improving ARR visibility and valuation resilience through cycles.

Why is MSME lending a focus now?

Richer, consented data lets lenders assess cashflows quickly and price risk better. That lowers acquisition costs and early delinquencies. The opportunity is large, but investors should demand cohort performance, clear first-loss structures, and strong collections. Platforms that publish stable loss curves across vintages stand out.

How can UK investors get exposure to India’s fintech 2.0?

Consider funds and rounds focused on B2B infrastructure, risk platforms, and merchant software. Diligence should verify regulated integrations, security certifications, and multi-product expansion paths. Avoid models reliant on subsidies. Prefer contracted ARR, transparent credit data, and proven sales cycles with strong renewals and upsells.

Global Market Insights

Fintech Innovation February 10: AI Governance, Merchant Infra Power India 2.0

ByDanny Kontos February 11, 2026

Fintech innovation took a structured turn on 10 February as leaders at the Bharat Fintech Summit stressed AI governance, merchant infrastructure, and data-led MSME lending. For UK investors, this shift signals fewer growth-at-all-costs models and more durable revenue from infrastructure, decisioning, and platforms. We see capital moving toward B2B rails, model risk controls, and underwriting engines that scale responsibly. This is practical for GBP portfolios seeking growth exposure to India without excess volatility, while aligning with clear compliance and risk standards.