Praveen Khanna, Vice President Alliances, Scoreme Solutions Pvt Ltd. talked about the present and future of digital banking, the future of fintech and NBFCs at the BFSI leadership summit 2022, organised by Elets Technomedia.
He shared his experience of the past year and averred that there was no digital platform to disseminate information on the loan process. He added that even the interest rates were difficult to compare from different lenders as there was no way to go across institutions as the process was manual and paper-driven.
He stated, “now if we move towards the future, the story has changed completely with the advent of fintech and the partnership between fintech banks and NBFCs digital banking “.
He stated that fintech is now clearly present, right from wealth management to insurance. Digital lending is taking shape, so one could suggest that the Indian fintech market is expected to rise from 2.3 lakh crores to almost 8.35 lakh crores by 2026.
“There have been phases of financial inclusion in India. The first phase was from 2014 to 2016 that’s the time when the Jan-Dhan accounts and the payment wallets took off, the second phase was from 2017 to 2021 which was driven by the advent of UPI”, he quoted.
This decade will be all about digital lending and it will be led by neo-banks and fintech. He also talked about the two themes that are taking place, i.e., account aggregator and the open credit enablement model.
He also stated that it is the mindset of the regulators that is leading to a big change in the fintech landscape in India, by the huge movement of the government toward financial inclusion and digitisation. The government has also recently come up with the model of setting up 75 digital banking units in 75 districts.