The Union Finance Minister recently highlighted the transformative role of Fintech in India, emphasising its impact on the nation’s financial projections.
Key Takeaways:
- Fintech dominance in the lending sector with a 36% share of NTC customers.
- Cyber threats, Crypto challenges, and Tax evasion are major threats, says FM
The Union Finance Minister Smt. Nirmala Sitharaman lauded fintech as a robust and dynamic tool for financial inclusion during her address at the Global Fintech Fest 2023 (GFF), a platform for global collaboration for a responsible financial ecosystem.
Minister Sitharaman underlined how fintech is extending its reach, even in areas traditionally associated with conventional banking functions like lending.
Intriguingly, a 2022 BCG Matrix Report revealed a remarkable shift in the lending arena. Fintech company seized a significant 36% share of new-to-credit customers (NTC), outpacing traditional brick-and-mortar banks with their 22% share.
A report by SIDBI and TransUnion CIBIL released in August 2023 also forecasted that NTC entities will drive MSME credit growth.
Fintech’s Role in Mitigating Threats and Call for Global Collaboration at the Global Fintech Fest 2023.
During her address at Global Fintech Fest 2023, Minister Sitharaman didn’t shy away from acknowledging the various threats to the financial ecosystem, including cyber threats, crypto challenges, and tax evasion. She appealed to the fintech industry to invest substantially in cybersecurity, fostering a more trustworthy financial ecosystem.
Sitharaman also emphasised the necessity of global collaboration in the finance industry where technology plays a major game-changer, stressing that global corporations are the need of the hour to ensure a responsible and inclusive ecosystem.
The Global Fintech Fest 2023 is a significant event in this regard, enjoying support from key organisations, including the Ministry of Electronics and Information Technology (MeitY), the Department of Economic Affairs (DEA) under the Ministry of Finance, the Reserve Bank of India (RBI), and the International Financial Services Centre’s Authority (IFSCA).
Organised by the Payments Council of India (PCI), Fintech Convergence Council (FCC), and National Payments Council of India (NPC), GFF 2023 is poised to drive innovation and collaboration in the fintech sphere.
