Fintech industry seeks collaboration with traditional banking system, eyes budget 2024-25 support
Optimistically waiting for the key announcements of the Union Budget, the fintech sector anticipates provisions to promote fintech and traditional banking systems to come together for a robust financial ecosystem in the country.
ANI
Jul 20, 2024 12:50 IST
New Delhi [India], July 19 (ANI): Optimistically waiting for the key announcements of the Union Budget, the fintech sector anticipates provisions to promote fintech and traditional banking systems to come together for a robust financial ecosystem in the country.
Recognising the importance of the rule-based financial ecosystem, fintech players are advocating policy initiatives in this direction.
Ranvir Singh, CEO and Founder of RING & Kissht, said, "We look forward to an environment where fintechs and traditional banking entities can work in tandem to increase access to services even in the remotest parts of the country. The fintech industry also seeks to evolve further through a robust regulatory framework."
Echoing the same sentiment, Tanya Prasad, Chief Investment Officer at Legalpay, said, "We're looking forward to policies that encourage collaborations between traditional financial institutions and fintechs, possibly through co-lending models or open banking initiatives."
Among the other announcements, the industry anticipates increased allocation to enhance digital infrastructure, cybersecurity measures, data protection frameworks, and incentives to drive innovation.
Reposing its high hopes in this year's budget, Ranjan Kumar, Head of Finance and Accounts at FincFriends, said, "For 2024, fintech industry leaders expect significant budget allocations to enhance cybersecurity, improve digital customer experiences, and drive innovation in financial technologies."
The fintech sector anticipates easy access to capital and an affordable interest rate, as Tashwinder Singh, CEO and MD, Niyogin Fintech Limited, stated, "We hope that the government takes measures to support the lending industry through access to capital and affordable interest rates, enabling entrepreneurs to realize their vision."
Noting the need to establish a robust system for fraud detection, Suresh Rajagopalan, CEO of Wibmo, said, "The creation of a fraud data consortium would enable financial institutions and payment service providers to share information about fraudulent activities, fostering a collaborative effort to combat fraud."
Harsha Solanki, VP GM Asia, Infobip, says, "We expect to see increased allocation for technologies such as AI, IoT, and cloud computing, which are crucial for India's global competitiveness. Additionally, we hope for initiatives that will enhance digital infrastructure, particularly in rural areas, to bridge the digital divide."
In addition, fintech players are expecting ease in tax funding and skilling initiatives for the sector.
"Tax reliefs and subsidies to reduce operational costs, increased funding for research and development to spur innovation, and grants for training and professional development are also some key expectations," said Rohit Gajbhiye, CEO and Founder of LEO1.
The industry is also participating in the incentives for digital payments, just as the banks receive for UPI. "The industry eagerly awaits incentives such as special taxation benefits suitable to both businesses and consumers, with a larger goal of increasing the adoption of digital payment methods, said Atish Shelar, COO, Tech Fini.
Fintech companies are gaining prominance in the country amid increasing digital payment habits. The adoption rate of fintechs is about 87 percent, which is way above the global average of 67 percent.
India is home to over 10,000 fintech companies working in diverse sectors and segments. India's fintech ecosystem is the 3rd largest in the world and is growing at a 14 percent CAGR.
While waiting for the Finance Minister to announce the 2024-25 budget, Dipal Dutta, CEO of RedoQ, said, "The Indian fintech sector is eagerly anticipating the upcoming budget. One expectation is tax breaks for smaller players, which could give them a significant boost. This measure would help level the playing field, allowing startups and emerging companies to compete with established financial institutions." (ANI)
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