A new report from Multi-Act Equity Consultancy Private Limited declares that Enterprise Software as a Service (SaaS) has become a "condition for survival" for India's financial services firms, including banks, insurers, asset management companies, NBFCs, and distributors. The study finds these institutions racing to address regulatory complexity, rising consumer expectations, and distribution demands.
BFSI institutions view B2B SaaS as critical for growth
According to the report, the majority of BFSI institutions surveyed consider B2B SaaS solutions essential for their next growth phase, particularly in security, compliance, data management, and customer experience. Demand is strongest in banking, wealth management, and payments, with mid-sized players leading adoption. The report notes that "scalability is the new currency, and B2B SaaS offers a cost-efficient path to achieve it."
Technology delivers competitive advantage for 70% of firms
Technology is already delivering tangible value: 70% of institutions cite Security & Risk Management as a top area, and 60% cite Data Management & Analysis. When it comes to impact, 70% of respondents said technology provides them with a competitive advantage in scaling operations.
Startups face structural hurdles in sales and implementation
Despite strong demand, startups encounter significant obstacles. Sales cycles stretch 6 to 12 months or longer, straining early-stage momentum. Implementation often stalls due to coordination gaps with System Integrators. Go-to-market strategies are frequently under-defined. The report stresses that "staying power becomes essential, as true traction requires years—not months—and patient, aligned capital."
Buyers prefer 'buy' approach and subscription-based security
Buyer preferences are clear: a majority of respondents prefer the 'buy' approach since they already have significant cloud infrastructure. Security solutions are frequently subscription-based, and switching cycles typically last two to three years. Institutions favor solutions that are "latest minus one"—proven and backed by sufficient references.
52% of vendors say B2B SaaS in fintech is in accelerated growth
On the vendor side, 52% of builders report that B2B SaaS in fintech is already in the "accelerated phase of growth," while 65% expect it to grow at an accelerated pace of over 25% over the next five years. RegTech, WealthTech, and alternative lending are expected to outpace the broader market.
Five big asks from SaaS providers
The report outlines "Five Big Asks" from SaaS providers: stay true to the label, improve resource quality, introduce more use cases, build for scale, and address vendor lock-in. It warns that "the need to scale is often deprioritised due to investor pressure to show rapid progress, resulting in solutions that must be rebuilt once growth accelerates."
India must accelerate adoption to compete globally with AI and blockchain
The report argues that India needs to accelerate SaaS adoption to compete globally, especially with the increasing use of AI and blockchain. For startups, faster innovation and delivery are crucial to mitigate external competition.
