Prime Minister Narendra Modi on Friday said innovation in the booming fintech industry will be incomplete without innovation in its security aspect as well, given the acceptability of fintech products and services among the common man.
Virtually inaugurating a forum for fintech deliberations called ‘InFinity forum’, Modi said the fintech industry was innovating to enhance access to finance and formal credit to every person in the country but this industry’s expanding reach also brought certain considerations to attention—importance of security.
“Fintech industry has achieved huge scale and scale means people from all walks of life as customers. This fintech acceptability among the masses has a unique feature - trust. The common Indian has shown immense trust in our fintech ecosystem by embracing digital payments and such technologies. This trust is a responsibility. Trust means you need to ensure the interest of people are secured,” Modi said in his speech.
“Fintech innovation will be incomplete without fintech security innovation,” the Prime Minister said. The event was organised by the International Financial Services Centres Authority and Bloomberg with Indonesia, South Africa and the UK as partner countries.
Modi also emphasised on the need for sharing experiences in India and expertise available here with the rest of the world, while also learning from others.
“Our digital public infrastructure solutions can improve the lives of people around the world. Tools like Unified Payments Interface (a real time payment system) and Rupay (a payment service) provide an unparalleled opportunity for every country - an opportunity to provide a low cost, reliable payment system as well as domestic card scheme and fund remittance system,” Modi said.
Further, the PM said that the Gift City in Gujarat where the country’s first International Financial Services Centre (IFSC) is located, represents India’s openness to ideas and investment.
India is offering a simplified regulatory regime to businesses operating from the IFSC to develop a global financial services centre like Singapore or London. The International Financial Services Centres Authority regulates firms operating from there.
“Gift city is a gateway to the global fintech world. IFSC at Gift City was born out of the vision that finance combined with technology would be an important part of India’s future development. Our aim is to provide the best international financial services not just for India, but for the world,” Modi said.
He added that both finance and technology are equally important in achieving ‘antyoday’ and ‘sarvoday’—development of the weakest section of the society as well as development of all.
“Infinity forum is a forum of belief, belief in the spirit of innovation and the power of imagination, belief in the energy of youth and the passion for change. Belief in making the world a better place. Let us together explore and advance innovative ideas in fintech to solve the most pressing issues emerging globally,” Modi said.
According to the PM, financial inclusion is the driver of fintech revolution. Fintech rests on four pillars—income, investments, insurance and institutional credit, he said. “When income grows, investment becomes possible. Insurance cover enables greater risk-taking ability and investments. Institutional credit gives wings for expansion and we have worked on each of these pillars. When all those factors come together, we suddenly find so many people participating in the financial sector,” Modi said.