Priya Patel
TLDR:
– Fintech stakeholders are anticipating strengthened cybersecurity and the expansion of digiLocker in the upcoming Union Budget for FY24-25.
– Strengthening cybersecurity frameworks is seen as crucial for secure digital transactions and maintaining user trust.
– Fintech industry professionals also expect the expansion of digiLocker to include integration of data like credit scores and insurance plans, creating a strong KYC framework.
The fintech industry is eagerly awaiting the Union Budget for FY24-25, with hopes for new innovations, strengthened cybersecurity, and enhancements to the KYC framework. Fintech stakeholders believe that empowering the fintech segment in Tier-II and beyond is crucial for the broader economic empowerment of the country. They expect the budget to include measures to strengthen cybersecurity frameworks and expand fintech services into underserved regions to enhance financial inclusion nationwide. Fintech professionals stress that stringent measures against digital fraud are imperative to safeguard digital payment ecosystems. They see this budget as a pivotal moment for the fintech industry and hope for strategic support and allocations that can pave the way for a thriving environment for fintech innovation in India.
The 2023-24 budget had made a major announcement of expanding the scope of digiLocker for KYC of individuals and businesses, and now fintech stakeholders expect the finance minister to signal her intent to further expand the scope of digiLocker. They believe integrating data like credit scores, insurance plans, and Udhyam Registration status would make digiLocker a strong digital public infrastructure that not only creates a strong KYC framework but also helps identify potential frauds, making the digital financial ecosystem safer. Fintech professionals also expect constant simplification and enhancement of customer experience to motivate more people to use digiLocker. They suggest adding the passport to the digiLocker wallet to help non-resident Indians (NRIs) better access financial products in India. Additionally, they emphasize the need for deeper engagement with infrastructure building innovators to transition to regulatory compliant frameworks for enterprises seamlessly.
Experts in the industry point out that fintech has witnessed unprecedented credit growth, surpassing Rs 50 trillion mark for retail loans. They believe that regulatory frameworks put in place by the RBI have bolstered the lending sector’s morale. Fintech professionals anticipate the budget to introduce direction-setting measures supporting further credit growth, financial inclusion, and the digital enablement of financial services. They also hope for the consolidation of India’s various public infrastructure through robust integrations, as this would lead to actionable data that fintech startups can tap into to create innovative products and services, increasing digital adoption and improving people’s quality of life.
Overall, the fintech stakeholders’ expectations for the Union Budget for FY24-25 revolve around strengthening cybersecurity, expanding digiLocker, and introducing measures to support credit growth, financial inclusion, and digital enablement of financial services. They believe that with the right support and allocations, the budget can create an environment where fintech innovation propels India’s economic progress.
