The future is India, says Modi at Fintech Festival in Singapore

Singapore: Prime Minister Narendra Modi today reiterated that India will lead the future of fintech and stated that Industry 4.0 is emerging in the country. He further went on to say that for 1.3 billion Indians, financial inclusion has become a reality.

Speaking at the world’s largest Fintech Festival, Modi said, “There is an explosion of fintech innovation and enterprise in India. It has turned India into a leading fintech and Startup nation in the world. The future of fintech and Industry 4.0 is emerging in India.”

He added that technology has transformed governance and delivery of public services in India and unleashed innovation, hope and opportunities and has made India a favourite destination for investment.

“Technology is defining competitiveness and power in the new world and it is creating boundless opportunities to transform lives,” Modi said as he began his two-day visit to the country.

“It has empowered the weak and brought into mainstream those who were on the margins. It has made economic access more democratic,” he said in his keynote address at the Singapore Fintech Summit. The festival drew as many as 30,000 participants from over 100 countries in 2017.

The event involves a three-day conference, and exhibition of Fintech firms and capabilities, a global competition of Fintech solutions and a platform for matching entrepreneurs and investment capital. Modi said the festival is a tribute to the youth of India with its eyes firmly fixed to the future.

Modi became the first world leader to address the festival which was launched in 2016. “We are in an age of a historic transition brought about by technology. From desktop to cloud, from Internet to social media, from IT Services to Internet of Things, we have come a long way in short time,” Modi said.

“Financial inclusion has become reality for 1.3 billion Indians. We have generated more than 1.2 billion biometric identities – Aadhaar or foundation – in just a few years,” Modi said.

“The character of the global economy is changing. Technology is defining competitiveness and power in the new world. And, it is creating boundless opportunities to transform lives,’ Modi said. He said India is a nation of diverse circumstances and challenges. ‘Our solutions must also be diverse. Our digitisation is a success because our payment products cater to everyone,” he said.

“The Indian story shows six great benefits of fintech: Access, inclusion, connectivity, ease of living, opportunity and accountability,” the Prime Minister said at the event.

“Across the world, from the Indo-Pacific to Africa to Latin America, we see inspiring stories of extraordinary innovation changing ordinary lives. But, there is much to be done,” he said. Modi said the digital technology was introducing transparency and eliminating corruption through innovations such as the Government e-Marketor GEM.

Modi also launched Application Programming Interface Exchange (APIX), a global fintech platform with Deputy PM of Singapore, T Shanmugaratnam, after his address at the event. “APIX will eventually connect our companies to financial institutions globally,”

The ecosystem stats
According to NASSCOM, the Indian fintech market is expected to grow at a CAGR of 22 per cent for the next five years. Another KPMG report states that the transaction value for the Indian fintech sector was estimated to be approximately $33 billion in 2016 and is expected to reach $73 billion by 2020.

 

Key Trends
A recent report by YES Bank called ‘India Fintech Opportunities Review (IFOR)’ reveals some key trends currently defining the Indian fintech ecosystem.

The report was developed after speaking to 611 Indian fintech companies, 123 of which are global firms. It also included inputs from more than 100 ecosystem members, including investors, academia, and incumbents.

* Fintech in India is still young
* India has the second highest global fintech adoption rate with collaboration
* Lending is a massive opportunity
* The talent pool is not ready for the future
* Proof of concept and early stage funding is still limited
* Managing burn rate is emerging as a key issue for Indian fintech
* Accelerators and incubators might actually be supporting in commercialisation
* Understanding of regulatory requirements is not complete.

NT Bureau