The survey forms the basis for this report from ACCA ‘Fintech as a catalyst for growth: Lessons from India’ which explores this growth, and the current and future use of fintech, across three sectors: education, energy and financial services.
Nearly 400 participants in the India-focused survey and in-depth interviews with 20+ fintech providers, users, financial professionals and policy influencers revealed they expect fintech to enhance financial inclusion, expand the banking base, and democratise access to alternative investments.
In asking respondents about the extent to which fintech will contribute to the growth of the economy in India in the next 3–5 years, 78% replied 'quite a lot/a significant amount', 20% were 'neutral' and only 2% said 'not at all/not a lot'.
Key takeaways from the report
Key takeaways from the report reveal that:
- User confidence in fintech is high and growing: digital public infrastructure is at its core with India Stack, increasing internet penetration and favourable demography the key enablers. Almost all (95%) respondents use fintech platforms frequently.
- Opportunities are numerous: innovation remains at the forefront of fintech’s growth, with artificial intelligence (AI) playing a crucial role. 72% of survey respondents see AI as a major factor in improving transaction security and speed, which are essential for building trust and ensuring the efficiency of digital financial services.
- With opportunities come challenges: 60% of survey respondents cited privacy and data security concerns. Over half (58%) cited the need for stronger regulatory processes.
- Everyone – including fintech providers, finance professionals and regulators – has a role to play in harnessing opportunities and managing risks: industry experts envision a future where fintech will evolve into a ‘finternet’ of multiple financial systems interconnected with each other, much like the internet.
The role of different parties in fintech
Maximising fintech's use for economic growth requires coordinated action from finance professionals, the regulator and fintech providers, each of whom has a distinct role to play:
Finance professionals
- bring in the ethical approach as 'conscience keepers'
- develop an understanding of the technology to implement the required internal controls through (a) upskilling (b) communication with technology & legal teams
- use planning and forecasting skills to drive success & financing for growth.
Regulator
- creates a market-friendly regulatory environment to balance consumer protection and innovation
- builds on AI capabilities such as big data and regtech to inform and shape policies and regulations.
Fintech providers
- exhibit ethical practices for the self-regulated ecosystem to function effectively
- focus on filling white spaces in the niche credit segments
- balance growth aspirations with required internal controls in collaboration with finance professionals.
