As digital India grows, there is an immediate need to amp up its security – an area where fintech is proving to be a game-changer. As a sector, fintech combines top-notch tech with regulatory compliance and security expertise. It is also at the right touchpoint, connecting growing businesses with their consumers online. In the current ecosystem, fintech products and players are empowering businesses to be more secure and protect consumers from fraud.

This gap, however, presents a massive opportunity to invest in building security products that safeguard consumer assets and business trust. Fintech is taking up this task.

Over the last ten years, fintech has grown organically with the country’s digital revolution. It has enabled traditional businesses to go online and empowered the growth of new, digital-first brands. By working with entities across sectors and scales, fintech companies understand the unique needs of businesses – whether it’s connecting with consumers or processing transactions. This expertise also puts fintech in the right place to empower businesses with better security against fraud.

Fintech’s strength comes from understanding how technology and regulatory compliance interact to make innovative, scale-able solutions. As businesses in the country evolve, fintech has kept pace to leverage emerging technologies to meet their needs better. Here are the ways fintech is making Indian businesses safer:

One of the first points of security when opening an online account is verifying the identity of the user. Fintech is leveraging advancements in biometric security, such as face recognition software, to make the opening of digital accounts safer through accurate identity verification.

Identifying fraudulent activity requires tracking large amounts of data. By leveraging AI-backed algorithms, fintech products are built to scan thousands of transactions in real time to identify payments and accounts linked to fraudulent activities.

To be proactive about online security, it’s important to identify accounts and entities with a history of suspicious behaviour. Fintech products can create risk profiles for accounts with a high chance of fraudulent activity. When businesses have access to this information, they are in a better position to decide how to safeguard their consumers and assets.

In one study, 26% of Indian businesses surveyed lost over $1 million to online fraud. When I connect with merchants trying to move to digital services, they often share their concerns over fraudulent activity and apprehensions about security.

Trust is the cornerstone of any financial system. With better security products, fintech can enhance public trust in digital India to catalyse the country’s economic growth further. By building on this foundation, fintech has the potential to emerge as the anchor of India’s digital safety

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The partnership of M2P and Helios also points to the growing ties between the UK and India in the fintech space.

Founded in 2014 in Chennai, M2P offers a cloud-native platform providing financial services technology to over 200 banks, 300 lenders and 800 fintech engagements.

The company’s solutions enable clients to offer payment services without requiring a banking licence, serving more than 50 million end users across 30 markets in Asia Pacific, the Middle East and North Africa, and Oceania.

Africa’s BaaS and infrastructure API market presents a significant opportunity for M2P due to the limited availability of comprehensive solutions for both large financial institutions and emerging fintech companies.

Most existing providers are single-region or single-product focused, offering M2P a chance for substantial market penetration with its broad product offering and expanding geographic footprint.

Elias Yazbeck, Managing Director of Financial Services and Fintech at Helios Investment Partners, says: “We believe M2P is ideally positioned to not only grow rapidly but also be a force driving financial inclusion and enabling infrastructure innovation and digital disruption in a meaningful manner across the continent.”

Helios, the largest Africa-focused private investment firm, brings operational expertise and a strong track record of backing high-growth financial services and fintech businesses in Africa. Over the past 20 years, the firm has invested in notable companies such as Fawry, Interswitch, Tpay and Thunes.

The funding comes at a critical juncture for M2P as it seeks to capitalize on the growing demand for fintech infrastructure in emerging markets.

Madhusudanan R, Co-Founder and CEO of M2P Fintech, highlights the company’s current market distribution: “In the recently closed fiscal year, we closed at about 40% from international markets while India continues to be 60% of the revenues that we generate.”

M2P plans to use the capital to strengthen its product portfolio and solidify its market leadership in India while accelerating global expansion efforts. The company has reported profitability for several quarters and closed FY24 with a revenue run rate of US$70bn, underscoring the scale of its operations and demand for its services.

Beyond its focus on banking, payments and lending offerings, M2P is exploring new opportunities in data-driven services.

Madhusudanan adds: “A fourth and important pillar is emerging around what we can do with data.” This aligns with the growing importance of data analytics and artificial intelligence in the fintech arena.

Indeed, M2P’s expansion coincides with increasing adoption of digital public infrastructure (DPI) initiatives globally.

In India, for example, initiatives such as account aggregation are transforming credit extension to small and medium-sized enterprises.

The company aims to leverage its experience in India’s advanced fintech ecosystem to drive innovation in Africa and other regions with similar market dynamics.

“We’ve done really well in the Middle East market, going as far as Egypt. These markets share similar demographics and ecosystem dynamics with India, especially in terms of internet commerce. We are essentially replicating our Indian success in these regions,” Madhusudanan explains.

The partnership with Helios is expected to provide M2P with strategic advantages, including guidance on navigating complex regulatory landscapes and access to an extensive network of key contacts in Africa.

As traditional financial institutions and new fintech players in Africa seek to modernise their offerings, M2P’s comprehensive suite of services could play a crucial role in shaping the continent’s financial technology landscape.

Madhusudanan concludes: “As the world’s largest Banking-as-a-Service provider, this capital infusion will not only reinforce our leadership in India – where we’ve established a robust, comprehensive ecosystem – but also accelerate our ambitious global expansion efforts.

“Africa, with its rapidly growing digital economy and pressing need for financial inclusion, presents immense potential for fintech innovation.

“We’re thrilled to partner with Helios, whose deep understanding of the African market, coupled with our powerful platform capabilities, will position us well to deliver on our mission of fostering financial inclusion and innovation.”

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