Fintech Can Leap To Top Tier Of India's Economy: Navin Surya

In an ever-evolving world of finance and technology, India's fintech industry stands as a beacon of innovation, driving change and transforming the global economic landscape. In this exclusive interview with Navin Surya, Chairman, Fintech Convergence Council (FCC), Emeritus, Payments Council of India (PCI) and Organiser and Advisory Board Member, GFF 2023, we delve into the pivotal role of global collaboration in the fintech realm. We also chart India's remarkable ascent in the international fintech arena, and explore how fintech's exponential growth aligns with sustainability efforts, shaping a more environmentally-conscious future. Excerpts:

How has global collaboration benefited our fintech companies?

Global collaboration can be viewed from various perspectives, especially for companies in different sectors. Taking the example of a fintech company, global collaboration can encompass several aspects. It may involve access to capital, knowledge sharing, expanding business operations abroad, or attracting international business partnerships.

In the context of global collaboration, the key lies in the exchange of information and understanding the needs and opportunities presented by different markets and platforms. For instance, our initial collaborations were established with countries like Australia and Germany, among others.

However, this year, our initiatives have attracted participation from delegates and speakers representing 125 countries. This diverse participation has led to multifaceted interactions. From a business and policy perspective, these interactions have far-reaching implications. It not only fosters business growth but also facilitates discussions and engagements at the policymaker level. For instance, our engagements with the Reserve Bank Innovation Hub (RBIH) have opened avenues for critical discussions and collaborations.

In essence, the objective is to create a knowledge-sharing platform that enriches and expedites the journey of knowledge and innovation. That's our overarching goal.

What role do you anticipate India playing on the global fintech stage, especially considering its current ranking and growth trajectory?

The Indian economy was ranked 10th about 14 years ago, but now, fintech is already at the third position. There's a possibility that fintech could even surpass the Indian economy to become the second or even the top sector. Situations like this, with increased exposure and connections, accelerate this process, having a profound effect on various aspects. This alignment involves policymakers, government, companies, collaborators, and vendors coming together, leading to positive implications and fast-tracking growth. The fintech ecosystem holds significant opportunities.

Furthermore, considering the relatively untapped market in India, there's a clear opportunity for it to become the largest in fintech. Currently, we rank third in terms of penetration, and there's substantial room for growth.                                                

It's like a continuous cycle. Fintech growth fuels economic expansion, and as the economy prospers, more opportunities emerge, further fostering the growth of the fintech sector. 

In the U.S., there are indications of a changing trend, and a similar transformation is occurring in India. The sentiments are shifting, and there is renewed excitement across various segments, including startups. While there was some turbulence in the startup sector about six months ago, the growth stage has remained relatively stable. The initial public offerings (IPOs) segment did face some challenges, with individuals being uncertain about whether to go public or not. However, it appears to be improving.

How does the growth of fintech align with sustainability efforts?

The growth of fintech plays a significant role in addressing global sustainability challenges, particularly from an environmental perspective. Traditionally, the financial services sector involved substantial paper usage, which has notably decreased with the advent of fintech. This digital shift means less paper consumption, contributing to a more sustainable environment.

Additionally, fintech reduces the need for physical visits to banks. Younger generations, in particular, are increasingly conducting their financial transactions digitally, eliminating the need for driving to physical bank locations. This not only saves time and energy but also reduces carbon emissions and lowers individual carbon footprints.

These are just a couple of examples of how fintech's expansion directly promotes sustainability by minimising negative impacts like excessive paper usage and unnecessary travel.

However, there's a challenge in establishing a framework to identify, measure, and standardise these sustainability benefits. While we intuitively recognise the positive environmental impact of fintech growth, it's essential to quantitatively measure and integrate these aspects into sustainability goals.

Moreover, fintech also has the potential to contribute to sustainability in other ways, such as facilitating climate funding initiatives. Exploring new models and opportunities for creating common public funds to support sustainable projects is another avenue to consider.

Fintech's contribution to sustainability is an inherent and automatic consequence of its digital nature. The key now lies in recognising, quantifying, and further enhancing its positive impact on global sustainability goals.