India has emerged as the global leader in fintech and one of the biggest disruptors in businesses in the recent years. The focus now is on safety, security and affordability of the system, said S Ganesh Kumar, Executive Director, Reserve Bank of India (RBI).
“We have proved to the rest of the world that in fintech we are the leader. The government and the regulators in India are focused on making fintech secure, safer and more affordable for the common people,” said S Ganesh at a summit on December 21.
Fintech has been at the top of new business interests in the country in the recent years. It dominates the startup ecosystem. Technology is not new to the financial institutions. They have been at the forefront of the use of new technologies. But fintech has brought a dramatic change in the products being offered and target market.
In recent years, by marrying Aadhaar numbers, UPI, ML, IoT, AI and blockchain with smart contracts, KYC, payment gateways, India’s fintech firms, in particular, banking companies, have taken a series of measures that have changed the face of the sector. With UPI 2.0 set launch in a few months, UPI-enabled credit systems and more will further step up the evolution.
On India’s Banking System
The digital payments sector in India is estimated to be around $50 Bn and is projected to touch $500 Bn by 2020. Understandably, the opportunity is enormous. Around 80% of economic transactions in India still happen through cash. The situation is just opposite in the developed economies where less than 20% transactions happen in cash.