ITM Business School organised Fintech Conclave in associated with ENQUBE collaboration and hosted a Panel Discussion on “Evolution of Fintech in India” packed by well-known industry stalwarts. The whole session was very insightful, enriching and interactive coupled with illustrations of live case studies. The panel focused on various aspects of the rapidly evolving Indian fintech landscape, with key themes revolving around innovation, digital infrastructure, sustainable finance, and regulatory advancements. The discussions underscored the need for continued collaboration among the government, banks, fintech companies, and regulators to ensure that the sector evolves responsibly while fostering inclusivity and sustainability.
- Differentiation calls for unique, impactful platform offerings.
- The need for Banks and corporations to go beyond traditional service provision and engage in innovation for societal benefits.
- Identifying the 3Cs (Customer, Credit, and Capital) as crucial drivers for fintech growth.
- A well-defined FDLC Fintech Digital Life Cycle, including boundaries, frameworks, testing, availability, and maintenance, was stressed as critical for ensuring accessible and affordable financial services.
Frictionless Credit and Digital Infrastructure:
- The journey from IMPS laying the groundwork for UPI, which has revolutionized digital payments in India, providing access to millions of end users.
- The evolution of credit was explored, emphasizing tools like the Unified Lending Interface (ULI), ONDC, OCEN, and Central Bank Digital Currency (CBDC), which aim to streamline and enhance credit access.
- The rise of banking ecosystem was discussed. The various Connected banking models were illustrated , such as API banking, Neo banks, incumbents’ digital banking initiatives, role of Defi in banking.
- The road to Sustainable Banking with highlighting the link between operational efficiency, investor returns, and growth in deposits for banks.
- The importance of expanding participation in the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) beyond public sector banks to include private banks was emphasized.
- Challenges such as customer outreach, awareness, and consent processes were noted, alongside the need for more efficient access channels to CGTMSE services.
- Exploring innovative Fintech led financial solutions for MSMEs, especially through risk-sharing and interest subvention mechanisms.
Regtech / Cybersecurity / Compliance
- RegTech role in assisting MSMEs in adhering to compliance regulations across different legal frameworks, with tools for monitoring, reporting, and verification (MRV) being seen as key enablers.
- The importance of strong data security protocols and stringent penalties for breaches was underscored.
- Impact of the Digital Personal Data Protection (DPDP) Act, 2023 on data privacy.
- SROs were highlighted as essential for risk management and building trust in new fintech technologies, playing a key role in ensuring customer confidence and expanding credit access.
- The panel elaborated three categories of regulation: principal-based, risk-based, and rule-based, noting India’s blend of principal and rule-based approaches.
- The role Fintech is playing in fastening the time, reducing the cost and increasing quality of compliance.
- The need of the hour to focus on transforming compliance from a cost centre to a revenue driver.
- Emphasized the critical role of ethics in ensuring long-term market sustainability.
- Focused on how fintech could drive clean energy adoption and risk-sharing for MSMEs.
- Greenfield tech's role in promoting sustainable finance was highlighted.
- The role of greenfield technology in promoting sustainable finance, clean energy adoption, and waste reduction was discussed as a way to reduce lender risk and improve finance accessibility.
