As the budget day approaches, the fintech industry is eagerly anticipating the Union Budget for FY24-25. The industry's aspirations revolve around new innovations, strengthening cybersecurity, and further enhancing the KYC framework. The industry feels that empowering the fintech segment in Tier-II and beyond with robust fintech solutions is crucial for the broader economic empowerment of the country, and strong measures are expected from the budget.
“Strengthening cybersecurity frameworks is vital to ensure secure digital transactions and maintain user trust. Expanding fintech services into underserved regions is a priority to enhance financial inclusion nationwide. Stringent measures against digital fraud are imperative to safeguard digital payment ecosystems. This budget marks a pivotal moment for the fintech industry. With strategic support and allocations, it can pave the way for a thriving environment where fintech innovation propels India's economic progress,” remarked Yuvraj Shidhaye, Founder and Director, TreadBinary.
Fintech stake holders say that the 2023-24 budget made a major announcement of expanding the scope of DigiLocker for KYC of individuals and businesses by making the common pool for all forms of digital identity and a steady framework for KYC is expected. “While this interim budget is a vote on account, we expect the Finance Minister to signal her intent of expanding the scope of DigiLocker further. Integration of data like credit scores, insurance plans, and the Udhyam Registration status etc. will go a long way in making DigiLocker a strong digital public infrastructure to not only create a strong KYC framework for India but also go a long way in identifying potential frauds and make the digital financial ecosystem safer,” said Pratik Daudkhane, Co-Founder – Decentro.
He further says that along with these integrations they expect constant simplification and enhancement of customer experience to motivate more people to use DigiLocker. “We also expect the addition of the passport in the Digilocker wallet to help Non Resident Indians (NRIs) better access financial products in India along with encouraging deeper engagements with infrastructure building innovators for efficient and seamless transition to regulatory compliant frameworks for enterprises,” added Daudkhane.
This expert is also of the opinion that the Finance Minister should take a direction towards consolidation of India’s various public infrastructure through robust integrations. “The pulse of the Indian people and business exists online in siloed data trails, consolidating these different DPIs will lead to a completion of these trails into robust actionable data which could be tapped into by fintech startups to create innovative products and services, increasing digital adoption further and improving the quality of lives of people,” remarked Daudkhane.
Experts point out that the Fintech has witnessed unprecedented credit growth, surpassing Rs 50 trillion mark for retail loans — a significant stride for the Indian financial services ecosystem and a series of regulatory frameworks put in place by the RBI have bolstered the lending sector’s morale. “We anticipate Finance Minister Nirmala Sitharaman’s budget to introduce some direction-setting measures supporting further credit growth, financial inclusion and digital enablement of financial services,” remarked Rishabh Goel, Co-Founder and CEO, Credgenics.
