India is today moving fast towards digitisation and focusing on the fintech industry to help it achieve financial stability and inclusion. At the recent Singapore Fintech Festival the Indian PM Narendra Modi mentioned that with the explosive growth seen by fintech enterprises and innovation, India has emerged a good destination for technology and fintech firms. With India showing an ROI of 29% against the global average of 20% according to the Fintech 2017 report, the PM’s account is indeed true!
The Vision and the Prime Minister’s Observations
Delivering his keynote address the Indian PM claimed that Industry and Fintech were emerging. The government’s policy and the PM’s vision is to use financial technology to eradicate financial crimes and money laundering, he said, while launching the APIX banking technology to reach out with banking services to nearly 2 billion unbanked people worldwide. He also commented that adopting fintech and its potential helps reach the marginalised poor people globally and financial inclusion.
Modi emphasised that his government’s efforts in four years gave citizens easy access to credit, bank accounts, and financial pluses when compared to the previous ones aided by innovations from fintech. Demonetisation pushed the total digital transactions to 244.81Cr in 2018 August and is expected to reach $2.4 billion in the next two years as per the Ministry of and Information, Electronics, and Technology.
Future of Fintech
The midterm 2018 election in the US has impacted the emergence of fintech in the USA. With a wafer-thin majority and poor coordination between Democrats and Republicans over a host of issues like the Americans first policy, immigration issues, and sanctions, data privacy, and internet openness policies, India stands to gain.
The mantra of financial inclusion in India has been a success so far with Aadhar based e-KYC, the evolution of digital financial transactions, mobile telephony, internet banking, cashless transactions and many such modern innovations reaching the common man. This definitely benefits the government too as it taps into the huge reserve of the unbanked in India on its way to financial stability and financial inclusion.
India will definitely see the emergence of visualisation and block-chain technology in aiding financial transactions. The dropping prices of the smart-phones and internet services will only spur more people to adapt to digital transactions. The slight setback of the Supreme Court judgment is a small hiccup that India will overcome with the proper use of its fintech courses, tech-savvy personnel and vast potential for innovation in the fintech field.