Insights from Day 1 and Day 2 and a look ahead to what’s next.
As the 2024 Global Fintech Fest unfolds over the course of its multi-day agenda, industry leaders, innovators, and disruptors are converging to dissect the current state and future trajectory of financial technology. This year’s event, held both virtually and in person, serves as a crucial platform for dialogue on how fintech is reshaping the financial services landscape globally.
With sessions ranging from the rise of digital payments to the challenges of financial inclusion, the event is a testament to the dynamic evolution of fintech, especially in the wake of the COVID-19 pandemic. Over the first two days, key discussions have brought to light several themes that underscore the sector’s transformation and its impact on the global economy.
A Surge of Startups and New Ideas
The fintech industry has witnessed a surge of innovation, with numerous startups emerging during and after the COVID-19 pandemic. These startups have not only disrupted traditional financial services but have also set new benchmarks for customer experience, inclusivity, and technological adoption. Its more important than ever to ensure trust and regulatory compliance in this rapidly evolving sector. New entrants must navigate complex regulations while pushing the boundaries of innovation.
“Licenses exist to instill confidence in the consumer that a particular institution or activity is safe and is authorized by the right authorities,” remarked Mr. Saurabh Mishra, Executive Director, Morgan Stanley Investment Management during his session “Is this the Era of Profitable Fintechs.”
India’s Payments Industry: An International Inspiration
India’s payments industry has become a global inspiration, showcasing how technology can drive financial inclusion at scale. Traditional banks, recognizing the need to stay relevant in this dynamic environment, are revamping their strategies to cater to millennials, Gen-Z, and even the next generation.
During a session titled “Driving a Culture of Innovation and Digitalisation by Leveraging New Tech such as GenAI and DLT,” Ms. Tan Su Shan, Global Head of Corporate and Commercial Banking at DBS Bank, shared, “When I joined DBS, we were rated the worst in customer service. We learned service quality from Singapore Airlines, which is one of the best when it comes to service. And then we adopted the RED approach.” The RED approach, as she explained, exemplifies the “Asian Service Standards” – Respectful, Easy to Deal with, Dependable, and emphasizes delivering exceptional customer service tailored to regional expectations. This transformation journey highlights how even established institutions are embracing change to offer better customer experiences, leveraging technology and innovative practices.
Ms. Tan Su Shan, Global Head of Corporate and Commercial Banking at DBS Bank during the session “Driving a Culture of Innovation and Digitalisation by Leveraging New Tech such as GenAI and DLT”
Profitability vs. Growth: A Balancing Act
A recurring theme during the discussions was the delicate balance between profitability and growth. Mr. Sailesh Raj Bhan, Chief Investment Officer Equity, Nippon India Mutual Fund, emphasized, “Many businesses fail because they ramp up growth too soon. Any business is a marathon and shouldn’t be looked at like sprints.” This sentiment was echoed by Mr. Saurabh Mishra, who added, “The question is when profitability will come. It is not an option. Companies need to assess the duration they need to become profitable.”
These insights reflect the industry’s shift towards sustainable growth models, where profitability is no longer compromised for the sake of expansion. Investors and companies alike are increasingly focused on building resilient business models that can withstand market volatility.
The Gig Economy: A New Frontier
The rise of the gig economy presents both challenges and opportunities for the fintech sector. In the session on “The Future of Work : The GIG economy and Fintech Synergies”, Mr. Shashank Kumar, MD and Co-Founder of Razorpay Software Ltd pointed out that raising invoices, establishing trust, having a sound financial system in place for gig workers are challenges that still need to be solved. As the gig economy continues to grow, there is a pressing need for financial products and services tailored to freelancers and gig workers.
Banks are already responding to this need. As Ms. Sunali Rohra, overnment & Institutional Business, Start-ups, Gig Banking, HDFC Bank, noted “As a bank, we are now exploring what is the suite of products we can offer to a freelancer. We are trying to see how we can give a boost to exports as the logistics industry has already made it easy to ship cross-border.” These efforts indicate a growing recognition of the gig economy as a significant force in the global economy, akin to the rise of the IT sector.
The “Future of Work : The GIG economy and Fintech Synergies”
Inclusive AI: A Commitment to Ethical Standards
As technology continues to integrate deeper into financial services, the importance of developing and implementing AI responsibly cannot be overstated. Google’s AI Principles, presented at the event, emphasize the need for AI applications to be socially beneficial, avoid creating or reinforcing unfair bias, and be built and tested for safety. These principles align closely with the fintech industry’s broader commitment to inclusivity, particularly as AI becomes a more integral part of financial services.
AI technologies that uphold high standards of scientific excellence and incorporate privacy design principles are crucial for ensuring that the digital transformation is not only innovative but also equitable. Google’s refusal to pursue AI applications that could cause harm or violate internationally accepted norms further underscores the industry’s responsibility to prioritize human rights and ethical considerations as it evolves.
Digital Literacy and Financial Inclusion for Women
When speaking of inclusiveness, digital literacy is a key component and has emerged as crucial factor in driving financial inclusion, particularly for women in rural areas. Leaders like Ms. Chetna Vijay Sinha, Founder and Chairperson, Mann Deshi Foundation and Mann Deshi Bank, who have been advocating for digital literacy in villages, are helping bridge the digital divide. The session on “Designing Inclusive Fintech: Listening to the Female User” highlighted the efforts that are empowering women to participate more actively in the digital economy, paving the way for more inclusive growth.
In today’s session “Leveraging Technology and Innovation for Growth of the Mutual Fund industry” Mr. Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company, reiterated the importance on inclusivity. “We are cognizant of the digital divide being created. 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.” This highlights the need for fintech solutions that cater to diverse demographics, ensuring that no one is left behind in the digital revolution.
“Designing Inclusive Fintech: Listening to the Female User”
Towards A More Dynamic Future
The rich discussions during the Global Fintech Fest are demonstrating that the fintech industry is now more dynamic than ever before, with innovations, strategic discussions, and digital transformation efforts taking center stage. From the rise of new startups to the transformation of traditional banks, the sector is evolving at a rapid pace. As digital literacy and financial inclusion become central to this evolution, the future of fintech promises to be more inclusive, innovative, and impactful.
Embracing the spirit of GFF 2024, the final day of the conference is dedicated to fostering global collaborations among stakeholders. The agenda is thoughtfully curated to explore key issues and devise business models that contribute to building an inclusive, resilient, and sustainable world. Attendees will have the opportunity to witness the showcase of innovative technologies poised to transform industries. In addition, globally renowned academicians will lead masterclasses, providing valuable insights and fostering knowledge-sharing.
The day will kick off with a keynote address by the Honourable Prime Minister of India, Shri. Narendra Modi, followed by a series of expert talks, product showcases, and panel discussions.
Topics will range from digital lending and AI-driven innovations in financial services to public-private partnerships in digital payment infrastructure. As the event draws to a close, participants will engage in high-level discussions about the future of fintech, reflecting on how the industry can continue to evolve in a rapidly changing global environment.
With such a robust lineup, the final day of GFF 2024 is set to provide attendees with actionable insights and a deeper understanding of how to navigate the future of fintech. As the conference concludes, it leaves behind a strong message of innovation, collaboration, and the drive to create a more inclusive financial ecosystem for all.
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Written by: techquity india
