India’s fintech market projected to grow to Rs.6,207 Bn by 2025 : Dr Karad, MoS - Fin Min
India's fintech sector, which was valued at Rs.1,920 billion (bln) in 2019, is predicted to reach Rs.6,207 billion by 2025, according to Dr Bhagwat Kishanrao Karad, Hon'ble Minister of State for Finance, Government of India, during an ASSOCHAM event.
Speaking at ASSOCHAM's 2nd Annual FinTech & Digital Payments 2021 event, Dr. Karad commended India's position as the leader in digital transactions, owing to the introduction of significant reforms in the industry by Prime Minister Narendra Modi and Finance Minister Smt. Nirmala Sitharaman.
“India is a pioneer in emerging countries in terms of financial technology adoption. In March 2020, the country had an adoption rate of 87 percent, compared to the global average of 64 percent. India's skilled people and technological environment make it an ideal location for financial technology development,” Dr. Karad stated.
“Despite the difficulties associated with pandemics, the fintech sector has grown. Financial inclusion was critical for the government during the pandemic. It was the primary vehicle for distributing over 1.70 lakh crore in direct benefit transfers to 800 million people under the Prime Minister Gareeb Kalyan Yojana,” the Minister noted.
“The Government of India is investing heavily in developing a robust and secure financial technology ecosystem, and we are sure that public-private partnerships will expand financial inclusion and provide contemporary financial services to all Indians,” he added.
According to Shri Vineet Agarwal, President of ASSOCHAM, "Covid-19 has an unparalleled impact on the global macroeconomic and microeconomic environments, as well as financial institutions." As a result, it is vital for us to focus on the most effective use of financial resources to protect the economy's growth cycle, as well as the livelihoods of individuals and enterprises, from disturbance. The conclave's topic, Fintech for the Underserved, is significant because it emphasises the critical role of digital financial services in realising the Hon'ble Prime Minister's goal of Atmanirbhar Bharat and a $5 Trillion economy. This ambition will become a reality through powerful, sturdy, and properly managed banking, financial lending, and FinTech companies”.
“Technology is a critical facilitator of a digital economy and has the potential to significantly improve small businesses' access to funding. Fintech is redefining business models across multiple segments, enhancing service delivery and expanding financial inclusion through digital channels. In 2020, retail digital payments will account for 52% of total payments, up from 6% in FY14, while physical cheque issuance would decline from 78% to 33%. Today, the country has jumped a generation to adopt Aadhar and biometric-based payment systems,” he remarked.
“However, the most significant influence of this technology will be on the development of a digital framework for financial inclusion. The use of Aadhar-based payment systems such as UPI Bhim for DBT has significantly decreased government programme inefficiencies, leakages, and costs. Around 100 crore beneficiaries got 3 lakh crores straight into their bank accounts in FY-21; this is a significant achievement for the country because the money is reaching the right person at the right time. Government transfers not only improve the lives of the underprivileged, but also foster the development of an eco-system for business-to-business transactions,” he noted.
Among the other distinguished speakers in the conclave are industry heavyweights such as, PwC India's Shri Vivek Belgavi, Partner & Leader FinTech (Knowledge Partner) Mastercard's Divisional President for South Asia, Shri Nikhil Sahni Shri Manoj Adlakha, Senior Vice President and Chief Executive Officer, American Express Banking Corporation of India, and Shri Jeremy Sturchio, Vice President, Asia Pacific Government Engagement, VISA , Ms Richa Mukherjee, Co-Chairperson, Shri V. R Govindarajan, CEO and Co-Founder, Perfios ASSOCHAM Fintech Council and PayU India's Director of Public Policy and Corporate Affairs discussed the country's future of digital payments.
Additionally, at the conclave, a report titled "FinTech for the Underserved: The Future of FinTech and Payments to Advance Financial Inclusion" was released. The report was co-authored with PwC as a knowledge partner. The Fintech awards, which recognise and promote the finest in the field, are another highlight of the conclave. Former Secretary to the Government of India, Shri R. Chandrashekhar, chaired the jury that selected the winners from a lengthy list of entries.