Chief Economic Advisor (CEA) V Anantha Nageswaran stated that fintech solutions can transform income, savings, and wealth creation in India, enhancing social stability. He also noted that the fintech industry must be mindful of potential societal challenges.
During the Global Economic Summit on fintech held in Mumbai, Chief Economic Advisor (CEA) V Anantha Nageswaran, who participated virtually, emphasized that industry participants must highlight the benefits and remain aware of the challenges that the powerful combination of finance and technology can pose to social stability and the fortunes of low and middle-income individuals.
“Financial literacy is recognized globally, not just in India, for its theoretical usefulness, but it is driven by market participants,” said Chief Economic Advisor (CEA) V Anantha Nageswaran. He noted that India’s advancements in fintech have made the country a model for leveraging technology to enhance financial inclusion, streamline government services, and foster innovation in the financial sector.
“India’s digital lending market was valued at $270 billion in 2022 and is expected to reach $350 billion by 2023. Similarly, the Wealth-Tech market is projected to grow to $237 billion by 2030, driven by a growing base of retail investors enabled by fintech innovations like robo-advisors and micro-investing platforms,” he added.
The spotlight on fintechs comes amid the sector’s ongoing growth in India, despite a decline in funding. In the first half of 2024, fintech firms received $795 million in funding, down from $1.93 billion during the same period last year, according to market intelligence platform Tracxn. This trend also coincides with heightened regulatory oversight of the sector.