The fintech sector is emerging as a massive growth market in India. With the financial new age tools in the mix, India's lending capabilities to MSMEs can increase threefold in future. It's an inevitability that V Anantha Nageswaran, Chief Economic Advisor of India, Ministry of Finance, Government of India, spoke about at the Global Fintech Fest 2022 (GFF 2022) in Mumbai.
V Anantha Nageswaran discussed India's fintech market reaching $3 Trillion by FY30 and said, "The next wave in the fintech sector could be the cash flow lending to MSMEs using Account Aggregator, UPI and OCEN. The lending potential of $3 trillion next year will be based on GST invoices and bank statements made available on Account Aggregator and banks adopting OCEN."
He also added that the government plans to pivot from digital financial inclusion to digital financial empowerment. This is being done through Jan Dhan 2.0, strong gender focus, PM SVAnidhi Scheme, eKYC and digital onboarding and protection of digital customers.
The move will be pivotal for India's forefront in the fintech market, with a current market size of $31 Billion making it one of the fastest-growing nations in the world.
V Anantha Nageswaran also said that there would be a major shift toward a more equitable distribution of investment across sectors including InsurTechs, WealthTechs, etc, which has already started taking place.
"We are talking about bridging the digital divide and the economic divide. Therefore the focus now is on how the combination of technology and finance is enabling access to finance and access to opportunities," he added.
GFF 2022 was organised and presented by the Department of Economic Affairs, Ministry of Finance, Government of India, Reserve Bank of India, International Financial Services Centres Authority (IFSCA), National Payments Council of India, the Payments Council of India (PCI) and the Fintech Convergence Council (FCC).
Industry stalwarts who attended the event included Kris Gopalakrishnan, Chairman, of GFF 2022 Advisory Board, Chairman, of Axilor Ventures and Co-founder, of Infosys, Naveen Surya, Chairman, of Fintech Convergence Council, Srinivas Jain, ED & Head of Strategy, SBI Mutual Fund and Smita Aggarwal, Global Investments Advisor, Flourish Ventures.