Fintechs should partner with banks to provide end-user solutions: Secretary, DFS, Ministry of Finance

Aug 07, 2024

Imperative to strike a balance between fintech innovation and timely regulatory response

 

 

NEW DELHI, 07 August 2024: Mr Vivek Joshi, Secretary, Department of Financial Services, Ministry of Finance, Govt of India today said that despite global geo-political hostilities and global supply chain disruptions coupled with prolonged higher interest rates, India has been doing well when compared with the rest of the world. “In the last few years, various policy measures have been taken to provide ease of doing business and ease of living for the citizens. Many landmark reforms like GST, IBC have been introduced by government which are transforming the Indian economy towards a sustained and high growth trajectory,” he added.

 

Addressing the ‘PICUP Fintech Conference & Awards’, organized by FICCI and IBA, Mr Joshi stated that India has emerged as the fastest growing economy in the world and there is huge contribution by the Fintech sector to India’s economic growth. “India’s fintech sector is 3^rd largest in the world with over 10,000 Fintechs working in diverse areas. The high-end economic growth would not have been possible without the contribution by Fintechs,” he added.

 

Speaking on the role of Fintechs, the Secretary said that Fintechs have transformed the financial sector’s architecture by providing innovative solutions in various services along with the new emerging segments. He further urged the Fintechs to work hand-in-hand with banks rather than creating solutions first and then approaching the banks.

 

Given the large and growing market size of the MSME sector along with the growing internet user base followed by an enabling policy and regulatory environment there are huge opportunities for the fintech sector. “Emerging technologies hold immense potential for this sector to improve the quality of services, enhance security measures and drive efficiency across the industry,” added Mr Joshi.

 

The digital growth, he added, has thrown unique challenges like governance issues, regulatory and statutory compliances, consumer protection along with fair practices. “It is essential to strike a balance between fintech innovation and timely regulatory response,” the Secretary asserted.

 

Mr Sunil Mehta, Chief Executive, IBA said that Fintechs have agility, capability to innovate, a lean structure, and out-of-the-box thinking capacities. This has really created a lot of value proposition for the banking system to collaborate. “India is leading globally in the payment space; it is now time for digitization of the lending space. The banking system has already started working on the adoption of technology for lending, he added.

 

Mr Sabyasachi Goswami, Co-Chair, FICCI National Committee on Fintech and CEO, Perfios stated that that the potential of the Fintech sector is much greater than its current performance. “To fully tap the potential, the government has set a vision for India to evolve as a ‘Fintech Nation’ with the highest number of Fintech firms and the highest Fintech adoption rate by incumbents fuelled by digital public infrastructure,” he added.

 

Mr Yashraj Erande, MD & Partner; Global Leader, Fintech & India Leader, Financial Services, BCG said, “It is evident that the Fintechs which are emerging have survived and are thriving. This is the age of responsible, mature, well-oiled Fintechs that will serve the nation, financial services ecosystem and serve the incumbents,” he added.

 

Mr BN Mishra, Senior Advisor, IBA delivered the vote of thanks.

 

The conference was attended by participants from the banking sector, fintech sector, insurance sector, technology companies, investors, members of the diplomatic community and academia.