In anticipation of the Union Budget 2024, Falcon’s Co-founder, Priyanka Kanwar, in an interview with CNBC TV18, articulates the Fintech Budget Wishlist. The Indian fintech and digital lending industry, projected to reach $720 billion by 2030, eagerly awaits announcements that align with their expectations for innovation and expansion. In this article, we will delve into the Fintech Budget Wishlist shared by Priyanka Kanwar, focusing on the critical asks from the finance minister for the fintech sector.
1. Beyond Capital Infusion:
Priyanka Kanwar acknowledges the substantial capital allocation in the previous budget and emphasizes that capital is not a constraint for the Banking, Financial Services, and Insurance (BFSI) space. The Fintech Budget Wishlist emphasizes key themes such as accelerating the shift for banks towards modern Cloud-native technology, strengthening fintech-bank partnerships, and promoting female participation in fintech.
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2. Driving Financial Inclusion:
The success of the India stack with protocols like UPI, account aggregator, and Digi Locker in bringing about inclusion in the payment ecosystem forms a cornerstone of the Fintech Budget Wishlist. The critical question posed is how to transform these advancements into monetizable innovative financial products, with a specific focus on access to services like term credit, loans, fixed income, and insurance.
3. Digital Lending Beyond Metros:
Addressing the potential surpassing of traditional bank lending by fintech lending by 2030, the conversation shifts to the need for digital lending solutions reaching small businesses and consumers in tier-three cities and beyond. The Fintech Budget Wishlist outlines key points, including the adoption of modern banking technology, strengthening fintech-bank partnerships, and offering incentives for banks to increase their risk-taking appetite.
4. Building Robust Digital Infrastructure:
The importance of a robust digital infrastructure is highlighted in the Fintech Budget Wishlist for seamless integration with existing systems, enhancing efficiency, convenience, and security. The demands for a supportive innovation ecosystem to foster research, collaboration, and incubation of emerging technologies like AI, blockchain, and cloud computing are emphasized.
5. Encouraging Investment in Banking Technology:
The need for banks to increase their investment in modern banking technology, which currently lags behind global standards, is a crucial point in the Fintech Budget Wishlist. Statistics reveal that Indian banks spend only 2 to 2.5% of their budget on technology, while the global standard is around 7 to 8%.
Conclusion of Fintech Budget Wishlist
As the fintech industry eagerly awaits the Union Budget 2024, Falcon’s Co-founder Priyanka Kanwar sheds light on the crucial aspects that could propel the sector forward. The Fintech Budget Wishlist reflects the industry’s aspirations for continued growth, innovation, and inclusivity, shaping the future of the fintech landscape. With these expectations, the Fintech Budget Wishlist becomes a blueprint for unlocking growth and advancing the fintech sector in India.