# Finance: banking, insurance, markets: Chokepoints and risks

Banks, insurers, markets and payment rails that lend, insure and invest money

Source page: https://www.materialinsights.org/industries/finance/risks/

#### Chokepoints and risks

- Payment-rail concentration: UPI runs through one operator, and two apps (PhonePe and Google Pay) carried 79% of its volume in May 2026^[4](https://newsonair.gov.in/government-says-nearly-55-49-crore-users-onboarded-on-upi-as-of-june/)^,^[5](https://www.outlookbusiness.com/economy-and-policy/phonepe-google-pay-combined-upi-market-share-drops-below-80-for-first-time).
- Cyber and cloud dependency: banks spend more on technology than the next four sectors combined, so a vendor or cloud outage can freeze services^[1](https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/global%20banking%20annual%20review/global-banking-annual-review-2026-precision-with-speed_final.pdf).
- Fintech disruption: fintech revenues grew 22% a year in 2021 to 2025 against 5% for banks, squeezing fee income^[1](https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/global%20banking%20annual%20review/global-banking-annual-review-2026-precision-with-speed_final.pdf).
- India's protection gap: insurance penetration flat at 3.7% of GDP leaves households exposed to health and disaster costs^[3](https://www.business-standard.com/amp/finance/insurance/india-s-insurance-penetration-needle-remains-flat-at-3-7-in-2024-25-126010900679_1.html).
- Credit and property cycles: bank loan books and insurer portfolios rest heavily on real-estate collateral.

## Other sections

- [Overview](https://www.materialinsights.org/industries/finance/index.md)
- [Where ₹100 goes](https://www.materialinsights.org/industries/finance/cost-mix/index.md)
- [Price links with suppliers](https://www.materialinsights.org/industries/finance/price-links/index.md)
- [Example story](https://www.materialinsights.org/industries/finance/story/index.md)
- [Linked industries](https://www.materialinsights.org/industries/finance/linked-industries/index.md)
- [Value chain](https://www.materialinsights.org/industries/finance/value-chain/index.md)
- [Materials drawn on](https://www.materialinsights.org/industries/finance/materials/index.md)
- [Sources](https://www.materialinsights.org/industries/finance/sources/index.md)