Fintech
Evaluating the future of Fintech
The opinions expressed by Entrepreneur contributors are their own.
You are reading Entrepreneur India, an international franchise of Entrepreneur Media.
Technology is catalyzing a profound transformation in fintech, revolutionizing how we manage regulatory risk and compliance, lending, wealth and insurtech. Digital records have replaced traditional systems, allowing for greater innovation in this field.
At the flagship event of Entrepreneur India, Tech & Innovation and W3 Summit 2024, held in Bengaluru, the panel discussed views from experts from the fintech world on regulations, security and the future.
According to Karthikeyan K, co-founder and CTO of KreditBee, the market size in the insurance sector itself in India is huge. Today, a very small percentage of the country is insured and is poised to continue growing.
Prajakt Deolasee, CTO at Turtlemint, discussed his views on the current regulatory climate and said that the insurance category has experienced many positive regulatory changes in the last 5 years. “Frankly speaking, the regulator is very consumer focused and protecting consumer benefits has been its focus. But they have also expanded into private categories to expand into the deeper depths of India, especially tier cities 2 and 3″.
India’s smaller cities have recently produced many innovations to keep the interest of the industry and regulators, and Prajakt believes that the regulatory environment currently is good enough for an ever-evolving space.
“One of the important aspects of regulation is to try to protect the customer and the ecosystem by avoiding any major imbalance,” said Giridhar Yasa, Chief Technology Officer, Lendingkart.
Cyber theft and cybersecurity in general have been a hotbed of concern in recent years, and the fintech sector is no stranger to the threat and has long been preparing against the threat to consumer assets and personal data.
Safe technology
Karthikeyan K, co-founder and CTO of KreditBee, said that security is the number one priority in his organization. “Ever since it came under the umbrella of RBI, the regulator has always had a lot of guidelines with respect to IT and everything related, but recently the introduction of other bodies has widened the scope of the domain. Even since the introduction of the ‘Digital Personal Data Protection Act’, all companies that process data are now aware of the consequences if security is not given the highest priority, he explains.
New technology is what has shaped and defined the fintech space in India for a long time. LendingKart is a fintech that offers loans to small and medium-sized businesses in the country. Giridhar Yasa, CTO of the company, shares that many advancements have been used in his organization, such as voice recognition tool that tracks moments, product presentations and even understanding customer sentiment.
“We started experimenting with and implementing machine learning and artificial intelligence there as well in areas like post-dispersal customer support,” he says.
Future perspectives
The future of Fintech in the current times appears to be a very bright and positive prospect, simply due to the size of the market that is yet to be penetrated. Avenues such as finance and insurance enjoy the fact that there has been a fair amount of growth with only a small percentage of the market penetrated.
With the advent of technology that has already been implemented, albeit in beta stages, and the government’s progressive attitude towards technology and its impact, keeping in mind the betterment of the population, one can safely assume that there are clear skies .
“If you have to have a multi-billion dollar economy, technology is the only way to do it. Financial inclusion is an important thing for the growth of the country and the only way to do it is through technology, Giridhar said.