Speaking at the Global Fintech Fest 2023 (GFF 2023), Minister of Finance and Corporate Affairs, Nirmala Sitharaman said that fintechs are surpassing conventional banks in serving new-to-credit customers. “Fintechs in India are driving more inclusion and influencing India’s financial ecosystem. Today, fintech has become a robust and dynamic financial inclusion tool. According to a 2022 BCG Matrix Report, in lending, which is one of the core businesses of the banks, fintechs had 36 per cent share of new-to-credit customers versus 22 per cent share of brick-and-mortar banks. Fintechs are reaching out far more even in lending, an area which is a conventional bank function,” Nirmala Sitharaman said.
Talking about the issue of threats to the financial ecosystem, the finance minister said, “We should be well seized of the threats and challenges, including physical border threats such as conventional warfare, cyber threats and attacks, crypto threats, drug and drug mafias, tax havens and tax evasions.” She also appealed to the fintechs to invest heavily to protect the cyberthreats, while underlining the important role of the fintech industry in building a responsible, financial ecosystem.
Nirmala Sitharaman also noted global collaboration, besides on strategic issues, the economy, etc., is also critical in terms of technological integration. “Technology is a powerful tool through which we are going to bring a lot of changes and influence a responsible and inclusive financial ecosystem. But for technology to be effective, global cooperation is absolutely critical,” she said.
GFF 2023 is supported by the Ministry of Electronics and Information Technology (MeitY), the Department of Economic Affairs (DEA), Ministry of Finance, the Reserve Bank of India (RBI), and the International Financial Services Centre’s Authority (IFSCA) and is organized by the Payments Council of India (PCI), Fintech Convergence Council (FCC), and National Payments Corporation of India (NPCI).
At the event, the finance minister also unveiled a report titled, “The Second Wave – Resilient, Inclusive, Exponential Fintech”, prepared by the Boston Consulting Group (BCG). Among the key international agencies partnering with GFF 2023 are the World Bank, the Global Knowledge Partnership on Migration and Development (KNOMAD), the Consultative Group to Assist the Poor (CGAP), and Women’s World Banking. Australia, Brazil, the United Kingdom, Germany and Israel are the Country Partners of GFF 2023.
GFF 2023 is a 3-day event with 13 tracks and hosting 800+ speakers. The event saw participation of 125+ countries, 250+ investors, 500+ investors and 50,000+ delegates, the event organisers said.