The Rise Of Fintech Inclusivity And Digitally Regulated Market Place

We witnessed the emergence of FinTech in the economy and experts assert that we are poised to witness the organic but rapid growth of FinTech to enable the marketplace in the technologically advanced future in every vertical of the businesses and even in the individual’s life.

BW Businessworld successfully conducted the Festival of FINTECH Conclave and Awards in association with BW Disrupt. Nirav Choksi, Co-Founder & CEO, CredAble; and Madhusudhan Ekambaram, Co-Founder & CEO, KreditBee joined us on a panel to discuss the rise of finTech interventions in varied verticals and nuances of FinTech to create a regulated market place and the panel discussion was well moderated by Prasar Sharma, Strategic Initiatives, BW Businessworld.

While there are gaps and regulations but trading and commerce have now come a long way both retail and B2B. Choksiexpressed the major challenges taking place and he said, “The challenge that I see in proliferation of credit in this country is the ability to onboard customers digitally that is very challenging on the B2B side.” The amount of time money and effort that is spent in trying to onboard an SME onto a lending program by banks or other financial institutions is still largely paperwork-driven.

Taking the discussion forward and discussing judicial interventions; Prasar Sharma pointed out a very valid point that is now when the digital ecosystem explodes there are challenges around; that we do have a great framework but there is a certain judicial issue that has come in the way of it. Sharma asked how you see the emergence of biometrics that go beyond Aadhar not only from a credit risk perspective but also from the perspective of ease of transaction.

“We are undergoing a transformation; With RBI launching a new set of rules and setting up a new task force on how the lending is taking place in B2C space,” mentions Ekambaram.

In today’s time of rapid innovation across industries; FinTech also finding niche areas and different ways of working. Madhusudhan Ekambaram explains the major differentiation of FinTech;

1. NBFC owns and runs a digital platform/app

2. Group Level Company owns a digital platform and NBFC takes care of it being associated with the group company

3. Pure play platforms and they totally rely on other banks/NBFC to operate it

The RBI today is regulating NBFCs and Banks; the moment one platform is acting as a pure-play private limited company accessing a platform and totally dependent on third party NBFCs and Banks and that’s where the RBI wouldn’t be very much aware of happenings taking place at that FinTech whether they are following the government-regulated processes or not.

As we have reached the semi-digital era and experts optimistically believe that it’s time to go full-hog. There are humungous opportunities for financial inclusions just the need to streamline certain processes for a better future.