Priya Patel
The Reserve Bank of India (RBI) has announced the establishment of a fintech repository, which aims to capture comprehensive data on fintech firms operating in the country. The repository will collect information on activities, products, technology infrastructure, and financial details of fintech companies, with the goal of enhancing transparency in the sector and supporting the development of policies that ensure its stability and growth.
Industry experts have praised the RBI’s move, believing that it will have a transformative impact on the financial services sector. They anticipate that the increased transparency resulting from the repository will attract more customers to fintech platforms and simultaneously increase business for fintechs and enhance access to funding for individuals. However, concerns have been raised about the potential additional compliance processes for fintechs voluntarily contributing data to the repository.
The voluntary nature of data submissions suggests a collaborative approach between regulators and industry players, with the repository seen as a commitment to nurturing growth and mutual support within the fintech ecosystem. The initiative is expected to have an impact on policy approaches, financial risk management, cybersecurity measures, and overall predictability within the sector.
An Ernst & Young (EY) report highlights the need for a paradigm shift in managerial approach, urging managers across all functions to cultivate financial acumen. The report identifies five key areas in financial management that non-financial managers should focus on, including basic financial terminologies, cost reduction, financial planning, familiarity with financial software, and effective collaboration with the finance department. The report emphasizes the importance of financial understanding for making informed decisions and driving results.
In summary, the establishment of the RBI’s fintech repository is seen as a pivotal step in reshaping the financial services landscape in India. The repository aims to enhance transparency in the sector and support the development of policies that ensure its stability and growth. The voluntary nature of data submissions reflects a collaborative approach between regulators and industry players. Additionally, the EY report highlights the importance of financial acumen for non-financial managers in navigating the evolving financial landscape.
