PATH BREAKING CHANGES IN DYNAMIC FINTECH SECTOR

Recent years have witnessed rapid and path breaking changes in financial technology  services in areas like making loans, credit cards,investment and insurance which is highly democratic,accessible and innovative. Financial technology  evolution can be traced back to the advent of computer systems and growth of  electronic banking in financial services  industry in 1970s and 1980s.Since the UPI was rolled out 8 years ago mobile apps like Bhim,,Google pay,phone pe etc have extended UPI transactions. For Fintech  as such major thrust occurred in 2000s through development of  electronic banking and online stock trading  platforms.During the period 2005-10 rapid strides in mobile payments and 2010-15 witnessed further growth of digital currencies crowd funding, etc. Evolving financial technology enabled further to improve, automate and deliver use of financial services to assist companies, business firms and consumers to manage their financial services more efficiently. Financial sector of the economy includes firms and institutions customers that provide financial services to commercial and retail customers through banks and non banking institutions,investment companies, Insurance and real estate firms etc. Major share of financial sector revenues has been generated by loans and mortgages.
Digital payments are transforming India by pushing towards a cashless economy. 
 Payments industry has undergone brisk changes transforming digital commerce and financial inclusion around the world.India is making digital payments accessible to all .Accordingly, India stack has been a catalyst to intensify innovation and serve to democratise identity data payments and governance. India stack has helped the country to achieve 80% of financial inclusion target. India's concerted effort towards achieving cash less economy has brought half a billion people mainly from marginalised sections to the economic  mainstream. It may be noted here that Reserve Bank of India is planning to launch a Public Technology Platform for " Frictionless Credit"the " Unified Lending Interface " ULI .Since 2023  it has been working on a pilot project.  On that basis,It is a digital platform that can speed up lending  through the seamless flow of digital infrastructure including land records from data service for providing lending. According to RBI Governor the new trinity of Jhan Dhan ,Aadhar and mobile or JAM- UPI -ULI will be a revolutionary step in India's digital journey. ULI is expected to benefit  stake holders like consumers,  lenders  and data service providers. The  objective is also to meet ever increasing requirements for credit especially from MSME and agricultural borrowers. It is highly helpful by minimising extensive documentation leading to prompt transactions. According 3to RBI Annual Report ULI platform has coincided with pilots in 5 segments- Kissan credit card loan upto ₹1.6 lakhs per head were disbursed and  total ₹3640 crores have been disbursed for MSME'S till March 31,2024.
    RBI is for balancing fintech innovation with prudence leveraging technology for continuously monitoring to address emerging challenges. When our digitalisation is reshaping the financial landscape. India must learn to balance innovation and prudence. Accordingly financial institutions and fintechs should capitalise on the new opportunities while mitigating the risks. Fintech in India are already doing well with MSME'S,micro enterprises and even road side vendors accepting cashless payments using QR codes. We have leveraged the technology to increase and improve  inclusiveness. India's global payments plan fails to move central bank's wallet watch. However India's UPI is currently linked to 7 countries namely Bhutan, Singapore, Srilanka, Mauritius,Nepal,UAE ,and France(for  e commerce only)which is not in agreement with India. Central bankers of the USA, Russia and France are not in agreement with RBI on interlinking of payment systems. 
As a matter of fact Fintech has made financial services both convenient and accessible to people around the world. People can access their bank account, make payments and transfer money anywhere,anytime promptly incurring low costs.Increased competition in fintech industry has resulted in better products and services for consumers. Obviously fintech companies are very much vulnerable to cyber attacks and other security risks. Since fintech is a relatively new industry and regulatory mechanisms are only evolving up fulfledged self regulatory organization may take time. Any way we are yet to witness far more innovations and revolutions in fintech industry in the years to come 

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