Highlights from the IBSi Payments & Lending Conference 2022

By IBS Intelligence

As millions of new customers are reaping the benefits of the FinTech disruption, from accelerated digital adoption in financial services to the reinvention of the banking industry, Payments has been the flag bearer of this revolution. The tech-led payments transformation is gathering pace every day, expanding in associated verticals such as lending and retail.

For this reason, IBS Intelligence, the world’s only pure-play Financial Technology research, advisory, and media firm, chose to focus its first in-person conference in over two years on the Payments & Lending world.

One of the first physical events held in India since the pandemic started, the IBSi Payments and Lending Conference 2022 brought together the best representatives of the ecosystem for a day of insights, panel discussion, fireside chats, and networking sessions on the evolving space of Payments & Lending.

Hosted in Mumbai’s Four Seasons Hotel on March 24th, the event gathered over 150 participants attending in-person or virtually, counting industry experts, senior executives at international banks, and vendors from high-profile companies including the likes of Axis Bank, BharatPe, APA Financial Services, Apax Partners, State Bank of India, and many more.

With panels covering topics like the future of digital payments, the cashless economy, alternative data, BNPL, cybersecurity and ethical lending, the conference boasted 10+ high profile speakers who offered insights on the trends, challenges, and future expectations of the industry. IBSi team members like Managing Editor Robin Amlot, Senior Partner V Ramkumar, and Reporter Gaia Lamperti moderated the sessions.

Why Payments & Lending?

In a recent webcast, 60% of nearly 2,000 participants cited the adoption of electronic payments as the most meaningful change in the B2B space. Digitisation of the banking industry and developments in new technology have led to customers demanding a seamless experience and real-time payment services.

The global digital payments transaction value will hit $14 trillion by 2026, with India alone expected to reach $250 billion, pushed by factors such as the boom of e-commerce (digital commerce makes up 64% of digital payments globally) and increased adoption in APAC, majorly supported by China and India.

In India, in particular, the growth of digital payments is largely favoured by UPI transactions, which represented 70% of volume in FY22, up from just 9% in FY18.

Meanwhile, the lending marketplace in recent times has undergone a transformational change, driven and supported by FinTechs. Globally, a mix of traditional and alternative lending channels now compete for advantage, with cross-border lending in APAC progressively rising in spite of the ongoing Covid-19 pandemic.

In addition, the use of cutting-edge technologies like artificial intelligence and big data analytics, alongside new models such as ‘Buy Now, Pay Later’ are powering the growth of an innovative, cost-effective and convenient payments sector.

Insights from the panel sessions

Throughout the conference day, senior leaders in financial services and FinTech experts discussed their expectations regarding the future of digital payments, the role that e-money and QR codes will play in driving the cashless economy in 2022, and the rise of cybersecurity to mitigate risks associated with the shift to digital.

“You have to put cybersecurity first in today’s times,” commented Bharat Panchal, Chief Industry Relations & Regulatory Officer at Discover Financial Services, in a panel discussion on the future of digital payments.

Some of the conversations also focused on new-age lenders across the globe and how they are broadly leveraging alternative data to expand their customer base, moving towards a more inclusive credit ecosystem. Akshay Mehrotra, Co-Founder & CEO of EarlySalary.com, who was among the guest speakers at the IBSi conference, shed light on its expectations regarding the plethora of market opportunities created by alternative data. “The top 10 FinTechs in the country are already holding more business in lending space than credit cards,” he said during a panel discussion.

The credit space is also benefitting from the innovation introduced by current trends and fast-growing verticals like UPI and BNPL. “UPI will continue to grow at a phenomenal rate and, at some stage, credit on UPI will be the next trend that will catch on,” Suhail Sameer, CEO of BharatPe, told the audience.

Great insights were offered on how the banking industry is reacting to the new challenges presented by a fast-evolving digital landscape. “What I see happen now across the banking system is that banks are becoming fast to keep up with the change,” said Gunit Chadha, Founder of APAC Financial Services and former CEO of Deutsche Bank Asia-Pacific.

Agreeing with him was Shekhar Bhandari, President – Global Transaction Banking, Kotak Mahindra Bank, who commented: “In India, 18 banks have come together to build blockchain-based projects to enable digitalisation and automation of trade-related finance processes.”

The way forward

First of a series of four global events, the IBSi Payments & Lending Conference 2022 represented a key moment to reflect on the future of the space in the post-pandemic era. Our team of expert analysts and journalists has provided deep, research-backed insights, and our guest speakers from market-leading vendors, international banks, and cutting-edge FinTechs have shared their valuable experiences and predictions for the future.

Thanking those who joined us for the event and keep supporting our work, we look forward to seeing you again at our next conference!