Assessing the Future of Fintech
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The technology is catalyzing a profound transformation in the field of fintech, revolutionizing the way we manage regulatory risks and compliance lending, wealth, and insurtech. Digital records have replaced traditional systems, allowing for more innovation in this field.
At Entrepreneur India’s flagship event Tech & Innovation and W3 Summit 2024 held in Bengaluru, the panel discussed expert insights from the world of fintech such as 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. A very small percentage of the country is insured today and it is poised to keep growing.
Prajakt Deolasee, CTO of Turtlemint discussed his opinions on the current regulatory environment climate and said that the insurance category has been experiencing a lot of positive regulatory changes in the last 5 years. “Frankly speaking the regulator is very consumer-focused and protecting consumer benefits is what their focus has been. But they’ve also been expanding toward private categories to expand toward the deeper depths of India, especially tier 2 and tier 3 cities.”
Smaller cities in India have recently been producing a lot of innovation to keep the sector and the regulators interested and Prajakt opines that the regulatory environment at present has been fairly good for an ever-evolving space.
“One of the important things with regulation is trying to protect the customer and ecosystem while avoiding any large imbalance,” said Giridhar Yasa, Chief Technology Officer, Lendingkart.
Cyber theft and cybersecurity in general have been a hotbed of concerns over the last few years and the fintech space is no stranger to the menace and has been bracing for some time against the threat that looms large over consumer assets and personal data.
Secure tech
Karthikeyan K, Co-founder and CTO, of KreditBee, said that security is the number one priority in his organization. “Since coming under the RBI aspect, the regulator has always had a lot of guidelines with respect to IT and all things related but recently the introduction of other bodies has expanded the umbrella of the domain. Also since the introduction of the ‘Digital Personal Data Protection Act’ all the companies that deal with data are now aware of the repercussions of not taking security as a top priority, he says.
New technology is what has shaped and defined the fintech space in India for the longest time. LendingKart is a fintech that offers lending to small and medium enterprises in the country. Giridhar Yasa, CTO of the company shares that a lot of advancements have been put to use in his organization such as the speech recognition tool that tracks moments, product pitches and even understanding the sentiment of the customer.
“We’ve started experimenting and deploying machine learning and AI there as well in areas such as post-dispersal customer servicing,” he says.
Future prospects
The future of Fintech in the current times seems to be a very bright and positive prospect, simply because of the size of the market that is yet to be penetrated. Avenues such as financing and insurance enjoy the fact that there has been a decent amount of growth with only a minor percentage of the market penetrated.
With the advent of technology that has already been deployed, albeit in beta phases, and the government’s progressive attitude towards the tech and its impact, keeping the betterment of the population in mind, one can safely assume clear skies ahead.
“If you have to be a multi-trillion dollar economy, technology is the only way to do it. Financial inclusion uh is a big thing for the for the country to grow and the only way to go about it is through technology, said Giridhar.
