Fintech Leaders in India Share Hopes for 2024 Union Budget
The fintech sector in India is eagerly awaiting the 2024 Union Budget, hoping for key announcements that will promote collaboration between fintech companies and traditional banks. This collaboration aims to create a robust financial ecosystem in the country.
Key Expectations
Ranvir Singh, CEO and Founder of RING & Kissht, expressed the need for an environment where fintechs and traditional banks can work together to increase access to financial services, even in remote areas. Tanya Prasad, Chief Investment Officer at Legalpay, echoed this sentiment, looking forward to policies that encourage co-lending models and open banking initiatives.
Ranjan Kumar, Head of Finance and Accounts at FincFriends, anticipates significant budget allocations to enhance cybersecurity, improve digital customer experiences, and drive innovation in financial technologies. Tashwinder Singh, CEO and MD of Niyogin Fintech Limited, hopes for measures that support the lending industry through access to capital and affordable interest rates.
Suresh Rajagopalan, CEO of Wibmo, highlighted the need for a fraud data consortium to combat fraudulent activities. Harsha Solanki, VP GM Asia at Infobip, expects increased allocation for technologies like AI, IoT, and cloud computing, especially in rural areas to bridge the digital divide.
Rohit Gajbhiye, CEO and Founder of LEO1, emphasized the need for tax reliefs, subsidies, and funding for research and development. Atish Shelar, COO of Tech Fini, mentioned the industry’s anticipation for incentives to increase the adoption of digital payment methods.
Fintech Sector Growth
India’s fintech sector is growing rapidly, with an adoption rate of 87%, significantly higher than the global average of 67%. The country is home to over 10,000 fintech companies, making it the third-largest fintech ecosystem in the world, growing at a 14% CAGR.
Dipal Dutta, CEO of RedoQ, hopes for tax breaks for smaller players in the upcoming budget, which would help level the playing field and allow startups to compete with established financial institutions.
Doubts Revealed
Fintech -: Fintech stands for financial technology. It refers to new tech that seeks to improve and automate the delivery and use of financial services.
Union Budget -: The Union Budget is the annual financial statement of India. It is presented by the Finance Minister and outlines the government’s revenue and expenditure for the upcoming year.
Digital infrastructure -: Digital infrastructure includes the technology and systems that support digital services, like the internet, data centers, and communication networks.
Cybersecurity -: Cybersecurity is the practice of protecting computers, servers, mobile devices, electronic systems, networks, and data from malicious attacks.
Tax reliefs -: Tax reliefs are reductions in the amount of tax that individuals or companies have to pay. They are often given to encourage certain activities or investments.
Innovation -: Innovation means creating new ideas, products, or methods. In fintech, it often involves developing new ways to handle financial transactions and services.
Adoption rate -: Adoption rate is the percentage of people who start using a new product or technology. An 87% adoption rate means that 87 out of every 100 people are using fintech services in India.