Technopreneurship in Fintech: A Study on Risk, Innovation, and Growth of Digital Lending Start-Ups in India

Abstract

In India, the rapid growth of technopreneurship is changing the financial services sector; specifically, digital lending. Start-ups that lend through FinTech use AI, big data analytics, and cloud technology, and an alternative scoring system to provide quicker, more comprehensive financial services. The focus of this study is determining whether the impact of innovation and how companies manage risk affects the success of digital lending start-ups in India. Primary data was collected from 120 digital lending companies operating out of Bengaluru, Mumbai, Delhi NCR, Hyderabad, and Chennai using a quantitative research design. The hypotheses were tested using statistical methods such as descriptive statistics, Pearson correlation, multiple regression, and ANOVA. The analysis shows that innovation intensity positively correlates with revenue and structured risk governance has a negative effect on default rates. The authors state that sustainable growth in digital lending requires a balance between aggressive technology and very strong compliance/risk monitoring frameworks. This study adds new information to the literature on technopreneurship as well as provides practical implications for both policy makers and Fintech entrepreneurs in India.