The fintech sector in Kerala is rapidly expanding, with an estimated market size of around ₹. 2,000 crore. The state is home to over 200 fintech startups, specializing in areas such as digital payments, financial analytics, and blockchain technology. These startups are playing a pivotal role in reshaping the financial landscape, and the sector is expected to grow at a compound annual growth rate (CAGR) of 15-20%.

A notable feature of Kerala's fintech ecosystem is its inclusivity, with approximately 15% of fintech startups being women-led. This highlights the state's commitment to empowering female entrepreneurs in the digital financial space. Over the past five years, fintech startups in Kerala have attracted more than ₹. 500 crore in funding, underscoring the sector's potential and investor confidence.

Kerala boasts one of the highest digital literacy rates in India, nearing 95%, which has contributed to a high adoption rate of digital financial solutions. This makes Kerala a leading adopter of fintech innovations in the country. The state is also home to several Global Capability Centers (GCCs), focusing on fintech and tech innovation, further enhancing its position as a hub for financial technology.

Additionally, Kerala has more than 15 incubators and accelerators dedicated to nurturing fintech and tech startups, providing vital support to emerging ventures. Among the notable success stories is ‘Open,’ a neo-banking platform from Kerala that has achieved unicorn status, further cementing the state's prominence in the fintech sector.