New Delhi (Agency): Union Finance Minister Nirmala Sitharaman addressed the vital role played by fintech companies in advancing financial inclusion in India during her inauguration of the three-day Global Fintech Fest (GFF) 2023. While acknowledging the substantial contribution of fintech in serving new-to-credit customers, she also highlighted the growing threats facing this dynamic industry, including cyber threats and crypto-related risks.
Fintech has become a powerful tool for enhancing financial inclusion, with a significant 36 percent share of new-to-credit customers, surpassing the 22 percent share held by traditional brick-and-mortar banks. This transformation has made fintech companies a crucial component of India’s financial ecosystem.
However, Sitharaman pointed out that fintech’s prominence also makes it susceptible to various challenges and dangers in today’s multipolar world. These challenges include conventional warfare threats, cyberattacks, cryptocurrency-related risks, drug-related issues, and tax evasion practices. Addressing these threats is essential to building a responsible, inclusive, resilient, and sustainable financial ecosystem.
In her address at the GFF 2023, Sitharaman urged fintech companies to invest significantly in safeguarding themselves from these emerging risks. Cyber threats, in particular, have become increasingly sophisticated, targeting financial institutions and their customers. Protecting sensitive financial data and ensuring the security of online transactions has become a paramount concern.
The event also featured a prestigious awards night, where prominent figures in the fintech industry from India and abroad were recognized for their outstanding contributions. Among the notable awards, Adeeb Ahamed, Managing Director of Lulu Financial Holdings in Abu Dhabi, received the Global Award for ‘Leading Fintech Personality of the Year’ for his groundbreaking work in revolutionizing cross-border payments between the Gulf Cooperation Countries (GCC) and India.
Other recipients included Bhavesh Gupta, President & COO of One97 Communications Ltd, who was honored as the ‘Fintech Leader of the Year,’ Tom Greenwood, Founder-CEO of Volt, who was conferred with the ‘Leading Fintech Personality of the Year-Europe’ award, and Kailash Nadh, CTO of Zerodha, who won the ‘Fintech CTO of the Year’ accolade. Open Network for Digital Commerce received the ‘Fintech Company of the Year’ award.
Sitharaman also unveiled a thought leadership report titled “The Second Wave – Resilient, Inclusive, Exponential Fintech” during the event. This report, presented in the presence of prominent industry leaders, sheds light on the future prospects and challenges facing the fintech sector in India.
In conclusion, the Global Fintech Fest 2023 served as a platform for recognizing the achievements of fintech leaders and discussing the evolving landscape of financial technology. Finance Minister Sitharaman’s address underscored the importance of vigilance against emerging threats, especially cyber and crypto-related risks, to ensure the continued growth and stability of India’s fintech industry.