How GoI, regulators and fintech firms can unlock the full potential of India's digital financial revolution
Fintech is reshaping monetary interactions, and as India progresses towards a cashless society, it assumes a pivotal role, driving financial inclusion and enabling millions to transition to the formal financial sphere.
This surge in fintech adoption has positioned India as a global fintech frontrunner. Its innovative solutions attract global investors, and position the country as a trailblazer in establishing a robust digital public infrastructure (DPI) ecosystem, a pivotal factor in enhancing financial inclusion. The dynamic DPI framework, strengthened by fintech advancements, is projected to inject a windfall of $400 bn into the economy in seven years. With an impressive 87% fintech adoption rate, India ranks No. 1, shattering global averages and bringing financial services to unbanked populations.
However, it's important to remember that unchecked growth can be risky. Data breaches and unfair lending practices can undermine consumer trust and financial stability.
As the world's third-largest fintech powerhouse, with about 10,244 entities growing at 14% CAGR, India's expansion highlights the importance of a robust regulatory framework to ensure that growth remains scalable and sustainable. Striking the right balance between fuelling innovation and ensuring responsible practices will be key to propelling India's fintech revolution to even greater heights. Regulatory focus should be on:
Data is key: In the age of big data, data privacy and security regulations are paramount. A clear framework outlining data
