The role of FinTech in building Viksit Bharat | EY #IndiaFinance

With innovation and technological advancements comes the need of self-regulation for cyber security, consumer protection and data protection. While FinTechs are accelerating financial inclusion, the rise in sophisticated fraud schemes poses a threat to this progress. In response, regulators are enforcing stringent cybersecurity in FinTech measures to foster a secure ecosystem that safeguards innovation while ensuring governance and trust. RBI’s new Self-Regulatory Organisation (SRO-FT) guidelines provide structured oversight and scenario-specific standards, ensuring robust governance without stifling growth. SRO-FTs play a critical role in driving FinTech innovation by addressing barriers such as threats, regulatory challenges and lack of standardization. By uniting industry participants, guiding emerging FinTechs, and influencing sensitive, industry-relevant policies, SRO-FTs can establish global benchmarks and foster sustainable growth.

FinTechs can contribute to the Viksit Bharat mission by simplifying access to financial services and empowering the underserved segments of society. By addressing key challenges like unemployment, credit gap, financial literacy and access to technology, FinTechs have the potential to catalyze economic growth and social progress. Continued collaboration between FinTechs, the government, and other stakeholders to create a more inclusive and technologically advanced financial ecosystem ultimately contributing to India’s transformation into a developed nation.

FinTechs have already started working towards achieving the Viksit Bharat mission, but they continue to face challenges like including cybersecurity threats, limited financial literacy, and the need for improved digital infrastructure in India especially in rural and remote areas. Government support and innovative solutions are crucial in overcoming these challenges.