Finance: banking, insurance, markets: Value chain, from upstream to the customer
Banks, insurers, markets and payment rails that lend, insure and invest money
Value chain, from upstream to the customer
Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 Rules and moneyIssue currency, set interest rates, supervise banks, insurers and markets, and act as lender of last resort; the chain cannot operate without their licences.1
Why chokepoint: One central bank and a few regulators per country, with no substitute; their rules and liquidity decide what every other player can do. Technologies Real-time gross settlement (RTGS) Supervisory data platforms Central bank digital currency pilots Stress-testing models Depends on Commodities Au GoldCt Cotton Chemicals Pig Organic pigments Energy DC Data centresICE Internal combustion engines and gensets Industries Software and IT servicesPaper and packagingExamples: Reserve Bank of India, SEBI, IRDAI, US Federal ReserveRun the switches that route and settle retail and interbank payments (UPI, cards, SWIFT messaging), charging per-transaction or membership fees.4
Why chokepoint: Each rail has one operator: UPI runs through NPCI and averaged about 20 billion transactions a month in 2025-26 (calculated), and cross-border bank messaging relies on SWIFT. Technologies Real-time payment switches Card networks and tokenisation ISO 20022 messaging Fraud scoring Depends on Chemicals PVC PVC Energy DC Data centresDist Distribution grids, mini-grids and interconnectors Industries Software and IT servicesData centres and cloudTelecommunicationsExamples: NPCI, Visa, Mastercard, SWIFTRun trading venues, clear and guarantee trades, and hold securities electronically for investors, earning trading, clearing and custody fees.1
Why critical: Liquidity concentrates on one or two venues per market and a single clearing house; an outage halts trading for the whole market. Technologies Matching engines Central counterparty risk models Dematerialised securities registers Co-location data centres Depends on Energy DC Data centresICE Internal combustion engines and gensets Industries Software and IT servicesTelecommunicationsExamples: National Stock Exchange of India, BSE, CDSL, CME GroupLicense and run the ledgers, loan, card, policy and trading systems that banks and insurers use, often as managed or cloud services.1
Why critical: A handful of vendors serve most large banks, and replacing a core system takes years and carries real failure risk. Technologies Core banking ledgers Policy administration systems Cloud-native microservices API banking platforms Depends on Energy DC Data centres Industries Software and IT servicesData centres and cloudExamples: Infosys Finacle, TCS BaNCS, Temenos, FiservSupply credit scores, bond ratings, prices and indices that lenders and investors use to price risk.1,6
Why critical: Few providers per function: S&P, Moody's and Fitch held 95.4% of ratings outstanding with US-registered agencies at end-2018, India's big raters are tied to them, and ratings are written into regulation. Technologies Credit scoring models Real-time market data feeds Index calculation Alternative data analytics Depends on Energy DC Data centres Industries Software and IT servicesExamples: TransUnion CIBIL, CRISIL (S&P Global), ICRA (Moody's affiliate), Moody's, LSEGTake deposits and lend to households and firms, earning a spread, plus fees from payments, cards and wealth services.1
Why important: Many banks compete, but large banks are systemically important and customers face real switching costs on loans and accounts. Technologies Core banking systems Mobile banking apps Credit-risk models Anti-money-laundering monitoring Depends on Commodities Au Gold Energy Bld Energy in buildingsDC Data centres Industries Software and IT servicesReal estateExamples: State Bank of India, HDFC Bank, JPMorgan Chase, ICBCLend for vehicles, gold, consumer goods and small businesses, often to borrowers banks underserve, funded by bank loans and bonds.1
Why supporting: A crowded field; borrowers and funders can move between lenders, though niche rural lenders are hard to replace locally. Technologies Digital loan origination Account Aggregator data sharing Collections analytics Co-lending platforms Depends on Commodities Au Gold Energy Bld Energy in buildings Industries Software and IT servicesVehicles, ships, rail, aircraftExamples: Bajaj Finance, Shriram Finance, Muthoot Finance, Cholamandalam Investment and FinancePool and price risks to life, health, property and motor, collecting premiums and investing reserves until claims are paid.2,3
Why important: Many insurers compete; India's 3.7% penetration shows the product is under-used rather than scarce. Technologies Actuarial and pricing models Policy administration systems Claims automation Telematics and health data Depends on Energy Bld Energy in buildings Industries Software and IT servicesReal estateExamples: Life Insurance Corporation of India, ICICI Lombard, Allianz, Ping AnInsure the insurers, taking on catastrophe and large risks across the world in exchange for a share of premiums.2
Why critical: A few global reinsurers carry most catastrophe risk, and capacity shrinks sharply after big loss years. Technologies Catastrophe models Climate risk analytics Insurance-linked securities Depends on Energy DC Data centres Industries Software and IT servicesExamples: Munich Re, Swiss Re, Hannover Re, GIC RePool savings and invest them in shares, bonds and property, earning a management fee on assets.1
Why supporting: Many managers compete and investors can redeem and move funds within days. Technologies Portfolio management systems Index and ETF products Risk analytics Systematic investment plan (SIP) platforms Depends on Commodities Au Gold Energy Bld Energy in buildings Industries Software and IT servicesReal estateExamples: BlackRock, SBI Funds Management, HDFC Asset Management, Employees' Provident Fund OrganisationUnderwrite share and bond issues, advise on deals, and execute trades for institutions and retail investors.1
Why supporting: Competitive; clients can move broking accounts and mandates within weeks. Technologies Electronic and algorithmic trading Discount broking apps Deal and research platforms Depends on Energy DC Data centres Industries Software and IT servicesTelecommunicationsExamples: Goldman Sachs, Kotak Mahindra Capital, Zerodha, GrowwGive consumers and merchants app-based payments, lending, broking and insurance, often on top of bank and NPCI rails.1,5
Why important: PhonePe and Google Pay together handled 79% of UPI volume in May 2026, so an outage at either is felt widely, though users can switch apps quickly. Technologies UPI third-party app integration QR codes and soundboxes Account Aggregator Embedded finance APIs Depends on Energy DC Data centres Industries Software and IT servicesData centres and cloudComputers and electronicsExamples: PhonePe, Google Pay, Paytm, PolicybazaarSell insurance, loans and accounts face to face, and provide cash-in, cash-out and basic banking in villages on behalf of banks.3
Why commodity service: Agents are numerous and individually easy to replace. Technologies Micro-ATMs and biometric (Aadhaar) authentication Agent apps Point-of-sale terminals Depends on Energy Dist Distribution grids, mini-grids and interconnectors Industries Computers and electronicsTelecommunicationsExamples: Fino Payments Bank, Spice Money, Marsh McLennan