FinTech Day: Experts discuss how financial technology has improved India’s economy

By Puja Sharma

Ahead of National FinTech Day on August 20, 2023, the substantial role that FinTech has played in bolstering the country’s economy and its pivotal role in fostering financial inclusion and reshaping the financial landscape.

Sanjeev Kumar, Co-Founder, Executive Director & CEO, Spice Money, “India’s FinTech industry has witnessed an unprecedented surge in recent years. Bolstered by the government’s clear vision for the sector and pioneering initiatives like UPI, which has exceeded 300 million daily transactions, along with the transformative JAM trinity, ONDC, and OCEN, as well as the emergence of over 3000 fintech start-ups, has significantly contributed to this growth.”

The rising disposable income coupled with the digital financial revolution paves the way for the FinTech sector and offers a golden opportunity to FinTech players offering financial products for customers as well as nanopreneurs.

Another sector that has added massive tailwinds to India’s economy is the MSME sector. As of August 2, 2023, more than 12 crore individuals were employed by the MSME sector. The Ministry of Micro, Small, and Medium Enterprises has been driving growth through diverse schemes.

Recent support measures including the Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), Rs. 50,000 crore equity infusion offered through the MSME Self-Reliant India Fund, and initiatives like ‘Champions’ and the RAMP program have further augmented the sector’s growth. Additionally, a majority of FinTech start-ups have been actively working towards providing credit accessibility to the MSME sector. Initiatives like ONDC and OCEN have helped building nanopreneurs as well as in addressing the discoverability issues for small business owners across the length and breadth of the country.

At Spice Money, we are delighted to be part of India’s successful FinTech journey and contribute to the country’s overall economy. We have been at the forefront of this revolution, leveraging our innovative technology platform and trusted network of 12.7 lakh nanopreneurs to serve the unserved and underserved populations of Emerging India. We have come a long way in our mission to make financial services accessible, affordable, and convenient for the citizens of Bharat.

India has been at the forefront of the technological advancements in the FinTech sector with initiatives like taking UPI to a global scale making it a peer-to-global payment network. With these initiatives, India has already secured a prominent space for itself in the global FinTech landscape. With sustained efforts of the two joining forces, the government as well as FinTech start-ups, the future of  India’s FinTech sector looks extremely promising, poised to navigate a trajectory of innovation, transformative advancements, and sustainable growth, reshaping the financial landscape for years to come.”

“The FinTech industry’s revolutionary impact democratizes access and empowers individuals to have control of their financial futures and build wealth. In addition to its impact on individuals, FinTech has also transformed the way businesses operate.” Rahul Pagidipati, CEO, ZebPay. It has streamlined payment processes, facilitated faster and more secure transactions, and provided businesses with valuable insights through data analytics. FinTech’s integration has empowered enterprises to optimize their operations, enhance efficiency, and elevate customer experiences, thereby fostering growth and promoting innovation across diverse industries.

The horizon of FinTech in India gleams with promise, a sentiment underscored by a recent report from EY that states that India’s FinTech sector is projected to witness a substantial surge in revenue, aiming to reach $200 billion by 2030, compared to the $50 billion recorded in 2021. These projections show the transformative potential of fintech to reshape traditional financial paradigms.

National FinTech Day echoes as a steadfast call to action, for governments, financial institutions, and tech enterprises to forge collaborative alliances and cultivate an enabling environment for further innovation. By fostering a regulatory framework that balances innovation and consumer protection, we can unlock the full potential of FinTech and ensure that its benefits are accessible to all.”