The Global Fintech Fest 2024 has successfully concluded, leaving behind a wealth of insights, transformative ideas, and forward-looking strategies. This year’s event was a showcase of rapid advancements and transformative ideas, with a special focus on India’s growing influence on the global stage. Over the course of three dynamic days, industry leaders, visionaries, policymakers, and stakeholders from around the world converged to explore the future of financial technology. As the curtain falls on this convergence of great minds, we look back on the key highlights and takeways.
The final day of the conference was marked by a keynote address from India’s Prime Minister, Shri. Narendra Modi, who highlighted the festivity that has enveloped the Indian economy and markets. Modi’s speech underscored the significant strides India has made in the fintech sector, positioning the country as a global leader in digital payments and financial innovation. He emphasized the role of technology in transforming India’s economy, making financial services more accessible and inclusive for millions.
In his keynote address, Prime Minister Narendra Modi highlighted the optimism surrounding India’s economic growth and the fintech sector’s pivotal role in it. He remarked, “There is festivity in the economy and markets,” underscoring India’s leadership in digital payments and financial inclusion. His speech set the tone for the event, emphasizing the government’s commitment to fostering innovation and expanding financial access to every corner of the country.
The Power of Collaboration in Fintech Transformation
A major theme of the Global Fintech Fest 2024 was the importance of collaboration between traditional banks and fintech companies. Throughout the event, speakers emphasized that fintech innovations are not a threat to traditional banking but a complement to it.
As Mahmoud Abubeid, CEO & Co-founder of Global Software Solutions Group, remarked that in India, non-bank fintech players brought transformation without negatively impacting banks; instead, “this transformation only brought more customers and more business to banks, just in a different way.” This synergy is driving significant changes in the financial sector, highlighting that the future of finance will be shaped by cooperation rather than competition.
MSMEs and Cross-Border Payments: The Next Frontier for Innovation
Innovation in the MSME B2B fintech space, particularly in cross-border payments, was highlighted as a critical area for future growth. On Day 2, experts discussed the challenges faced by gig workers and SMEs in accessing tailored financial services, with an emphasis on the need for improved cross-border payment solutions. For in-depth takeways from Day 1 and Day 2, see: The 2024 Global Fintech Fest Highlights: An Era of Innovation in Fintech
On Day 3, during the session “Innovating for the Future: Transforming Global Banking through Fintech Partnerships,” Arjun Vir Singh, Partner, Arthur D. Little, pointed out, “The entire MSME B2B fintech space will see the next revolution. This is where we need more innovation to address existing gaps in current modes of cross-border payments.” This area is ripe for disruption, offering significant opportunities for fintech companies to develop new solutions that cater specifically to the needs of small and medium enterprises. Experts also highlighted that the next era of payment may look even more evolved. Cross-border payments are still a pinpoint for most SMEs and are the next focal point for innovation.
Financial Literacy and Advisory Services: Bridging the Gap
The importance of financial literacy and advisory services was underscored by several speakers, who highlighted the challenges of getting individuals to invest in financial advice. On Day 1, sessions focused on the digital divide and the need for better financial education, particularly for women in rural areas. Chetna Sinha, Founder and Chairperson of Mann Deshi Foundation, underscored the importance of digital literacy in promoting financial inclusion.
Financial advisor and popular influencer Sharan Hegde noted, “People are not willing to spend on financial advisors even if it helps them grow financially.” This sentiment was echoed by Neil Borate from Mint, who emphasized the need for regulation in the financial advisory space, saying, “There is no regulation for financial advisors; stronger oversight is necessary.” He highlighted the issue of social media creators who run courses without thought, which often have zero value. “Rule of thumb,” Borate notes, “is that the more entertaining it is, the less value it’ll have. If you see a lot of singing and dancing and skits happening when it comes to financial advice, don’t expect it to be accurate.”
The Risks and Rewards of Trading
Trading, while seen by some as a viable financial strategy, was also highlighted for its potential risks. Sharan Hegde drew a parallel to the rigorous preparation for IIT exams, stating, “People shy away from trading thinking the success rate is low, but that shouldn’t deter them from trying.”
At the same time, Pranjal Kamra, founder of Finology, cautioned, “The problem with trading is that it may become addictive and doesn’t add value if you don’t succeed … you may end up risking a lot of your assets in the process … which is why I do not encourage trading aggressively.” This underscores the need for a balanced approach to trading, acknowledging both its potential and its pitfalls.
The Role of Digital Technology & Artificial Intelligence in Financial Services
Digital technology and artificial intelligence was repeatedly mentioned as a game-changer for the future of financial services. On Day 2, Ambarish Kenghe, VP/GM of Google Pay, Google, spoke about the increasing penetration of Google Pay in India during the session “The India Fintech Dream – Unlocking Financial Inclusion & Fueling Economic Transformation.” He emphasized the importance of listening to customer feedback and increasing reach in rural India to address challenges linked to digital payment adoption.
Sharan Hegde highlighted the potential of AI to lower costs, stating, “Gen AI will help bring down the cost of financial advice a few years from now.” AI’s ability to democratize access to financial advice could play a crucial role in promoting financial inclusion and empowering individuals to make informed decisions.
In a previous session, Nilesh Shah, Kotak Mahindra Asset Management, had also addressed the need to democratize access by bridging the digital divide. “My technology should work for both an 18-year-old and a 75-year-old, as both may need different things and have different touchpoints.”
The Importance of Regulatory Compliance for Fintech Startups
Regulatory compliance was identified as a critical factor for the success of fintech startups. Melissa C. Frakman, CEO & Founding Partner at Emphasis Ventures, warned that “One of the biggest mistakes that new fintech players make is taking too long to take compliance seriously.” This takeaway serves as a reminder that in the heavily regulated fintech landscape, adherence to regulatory frameworks is non-negotiable and essential for building trust and credibility.
This also reiterated the point made by Saurabh Mishra, Executive Director, Morgan Stanley Investment Management, in a previous session, emphasizing the role of licensing in building consumer trust during the session. “Licenses exist to instill confidence in the consumer that a particular institution or activity is safe and authorized by the right authorities.”
India’s Emergence as a Global Fintech Leader
The conference repeatedly highlighted India’s growing influence in the global fintech landscape. As Melissa Frakman observed, “There has been a sea-change in the perception of India as a fintech leader.” India’s advancements in digital payments and financial services have positioned the country as a role model for other nations, with its success stories now recognized and celebrated globally.
The Global Fintech Fest 2024 has clearly illustrated that the fintech sector is on the cusp of significant transformation. As the industry continues to evolve, the insights shared during the conference provide a roadmap for future innovation and growth. The event highlighted the importance of collaboration between banks and fintechs, the need for robust regulatory frameworks, and the potential of AI to revolutionize financial services. Sectors expected to drive the next wave of innovation and attract substantial investment include wealth management, banking operations, and technology in insurance, as they offer new solutions to longstanding challenges in financial services.
As the world watches, India’s fintech sector is poised to lead the charge in creating more inclusive, accessible, and innovative financial solutions. The Global Fintech Fest has set the stage for what promises to be a dynamic and transformative era in the world of finance.
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Written By: Techquity india
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