BS BFSI Summit: 'Regulatory compliance key to consumer protection'

Fintech leaders and industry experts emphasized the crucial role of regulatory compliance in ensuring consumer protection and fostering long-term business success. While compliance may incur costs, it strengthens consumer trust and safeguards data security in an era when customers increasingly demand faster service, said panellists at the BS BFSI Summit.

 

During a panel discussion titled “Navigating the Future of Financial Services in India: Tech Road Map," experts pointed out that today’s consumers define trust as more than just brand reputation and governance — they expect seamless, successful transaction experiences. The speakers highlighted a trend among younger consumers, termed the "Blinkit Generation", who are more demanding and seek rapid, efficient service.

 

 

“Nobody likes to part with money without having established trust and credibility… In the last 20 years or so, when I started my career, trust was defined by conduct, trust was defined by the brand, trust was defined by governance. Today, trust means all of that, but also trust means that if you push a button, the transaction should go through end-to-end,” said Girish Krishnan, director, Payments and Merchant Services, Amazon Pay India.

 

Krishnan further added that this “Blinkit Generation” also maps how the customer experiences are evolving because this building block fundamentally has changed the game for businesses.

 

“The applications of that building block manifest as new solutions or applications for customers, which cater to a new set of unmet expectations that was probably not there earlier,” he added.

 

This generation is also looking at more seamless financial services. The “Blinkit Generation” requires speed, convenience, and completeness of transaction.

 

“What we're seeing is that the customer is no longer just looking at a standardised transaction. They are looking at seamless access to finance, payment, and lending, and all kinds of financial products on any platform that they are engaging with, whether it's a social media platform, or an e-commerce platform, or it's a ride-hailing app, or anything,” said Ashish Sehdev, VP and head, APAC Everest Group.

 

Along with changing user base, businesses also have to deal with a fast-changing regulatory environment. According to a survey by Everest, more than 50 per cent respondents reported that the stringent regulatory environment has increased costs and complexity for firms. The report — Technology Advances in the Indian Banking, Financial Services, and Insurance Sector — was conducted on behalf of Business Standard.

 

The report also said that about 80 per cent respondents indicated that these regulations have led to increased investments in compliance technologies and prioritising risk management solutions.

 

Sehdev said, “Innovation is also important to compete in the marketplace to build those products or services, and to differentiate yourself. So, I think that's a balancing act. However, we did gather that a majority of respondents did not feel that compliance is actually holding them back in a major way.”

 

Amid the change in landscape, there are clear trends emerging in the Indian corporate boardrooms towards tech-heavy workforces, with companies increasingly favouring engineering teams and focus on cybersecurity.

 

According to Sehdev, two-to-three years ago, boardroom conversation revolved around ESG (environmental, social, and governance) ratings but now it is all about Gen AI. This also means that the demand for chief technology officers (CTOs) is also going up.

 

In Indian corporate boardrooms, particularly among established companies, there's a clear shift toward a more tech-oriented workforce. Discussions are increasingly centred around whether companies should maintain lean tech teams that integrate external technologies or build larger, dedicated teams. This approach varies based on each company's unique needs, explained Srikanth Subramanian, MD & CEO of Angel One Wealth.

 

Subramanian also highlighted cybersecurity as a key concern, noting that while technology has brought numerous conveniences, it has also introduced various risks. "If technology has given us ten features for convenience, it has also opened ten avenues for potential hacks," he said, referencing a recent blog post that emphasised the inherent risks in today’s digital landscape. 

“My boss is my CEO. He is completely invested in what's happening in technology… as it is evolving, our management team has started taking a lot of interest in how technology can help them in doing businesses, and hence the businesses are being pivoted around technology, it is becoming easier. The core team of investors also understands technology and there is a possibility that you will get attention and you will get time from them,” said Saurabh Tiwari, CTO, Policybazaar.

 

“Last five years have been amazing for such kind of investment trends, and I am sure a lot of us have been investing in various technology areas. So, they are the best people to answer that,” Tiwari added. 

 

However, the panellists agreed that whatever is coming from the regulator is coming for good and is in favour of consumers.