India’s Financial Services Secretary, Vivek Joshi, has called on the fintech industry to work more closely with banks to create scalable and regulatory-compliant solutions. Speaking at the FICCI-IBA PICUP Fintech Conference, Joshi highlighted India’s leading fintech adoption rate and the significant impact fintech has had on the financial sector.
Need for Collaboration
Joshi emphasized that fintech companies should collaborate with banks rather than developing solutions independently. He noted that public sector banks face larger, more complex issues that require tailored solutions. Joshi suggested that banks identify the problems they encounter and that fintech companies provide innovative solutions to address these issues.
Balancing Innovation and Regulation
While recognizing the potential of fintech, Joshi also discussed the challenges that come with digital growth. These challenges include governance issues, regulatory compliance, and consumer protection. He stressed the importance of balancing innovation with regulatory measures, highlighting the need to focus on areas such as cybersecurity and financial literacy.
Addressing Governance and Compliance
Joshi addressed the governance issues that can arise with rapid digital growth. He stressed the importance of regulatory compliance and consumer protection, urging fintech companies to develop solutions that not only innovate but also adhere to regulatory standards. This balance is crucial to maintaining trust and stability in the financial sector.
Importance of Cybersecurity and Financial Literacy
Joshi highlighted the need for heightened attention to cybersecurity. As the fintech industry grows, so do the risks associated with digital transactions. Ensuring robust cybersecurity measures is essential to protect consumer data and maintain confidence in digital financial services. Additionally, he emphasized the importance of financial literacy, ensuring that consumers are well-informed about the digital financial products and services they use.
Budget Announcements and Digital Lending Models
Joshi also discussed recent budget announcements, urging banks to develop new digital lending models for Micro, Small, and Medium Enterprises (MSMEs). He emphasized the role of fintech in creating these new models, which can provide MSMEs with greater access to financing and support their growth.
Joshi’s message at the FICCI-IBA PICUP Fintech Conference was clear: collaboration between fintech companies and banks is essential for developing scalable, regulatory-compliant solutions. By working together, fintech and banks can address the challenges of digital growth, ensuring innovation while maintaining regulatory standards and consumer protection.
