 "Fintech solutions can positively impact income, savings: CEA Nageswaran")
The evolution of fintech solutions can have a transformative impact on the income, savings, and wealth creation in India, thereby contributing to social stability in the country, Chief Economic Advisor (CEA) V Anantha Nageswaran said on Thursday.
He added that the fintech industry should be aware of the challenges that fintechs may pose to society.
“The industry participants in the course of their businesses must accentuate the positives and be cognizant of the challenges that a potent combination of finance and technology can together pose to social stability, to the fortunes of low and middle income people,” Nageswaran said during the Global Economic Summit on fintech held in Mumbai. He participated in the event virtually.
“Globally, and not just in India, financial literacy is something that is understood in theory for its usefulness but it is set up by market participants,” he said.
He added that developments in India's fintech space have positioned the country as a model for other countries in leveraging technology to promote financial inclusion, streamline government services, and encourage innovation in the financial sector.
“India’s Digital lending market was valued at $270 billion in 2022 and was expected to reach $350 billion by 2023. Similarly, the Wealth-Tech market is anticipated to grow to $237 billion by 2030, driven by a rising base of retail investors enabled by fintech innovations like robo-advisors and micro-investing platforms,” he added.
The focus on fintechs comes as the sector continues to grow in India. However, there is a drop in funding to fintech firms. In the first half of 2024, funding to fintech firms was pegged at $795 million, compared to $1.93 billion during the same period last year, according to data from market intelligence platform Tracxn.
It also coincides in the wake of increased regulatory oversight of the sector.