India Needs Low Cost, High Volume Products, Interoperability of Accounts and Flow-based Lending to Give a Push to Financial Integration: Amitabh Kant

Financial Integration will lie in the sustained use of financial inclusion tools made available with the consumers, said Shri Amitabh Kant, CEO, NITI Aayog during the CII Fintech and Digitisation Seminar scheduled. In its 125th year of service to the nation, CII, in line with the vision laid out by the Prime Minister of India and keeping in mind the complexities created by COVID, had organised the 1st FinTech and Digitization Seminar with the theme 'Preparing for the Post Pandemic World' today.

Amitabh Kant said that the biggest thing will be solving Financial Inclusion and then achieving Financial Integration. He mentioned that FinTech industry in India can solve India's unique needs like financial inclusion, access to credit, limited insurance reach and also can serve as a solution provider of choice for global financial sector to emerge as one of FinTech's global hubs of choice, and that is really the potential of India going forward. He further added that, Financial integration will be achieved by achieving parity across 3 layers, firstly, access to basics i.e. savings, equity markets and insurance; secondly availability of products and services and thirdly ability to choose and customize.

He highlighted that the key areas which need to be actualized to achieve financial integration are really to make ourselves presence-less, paperless and seamless with respect to on-boarding of customers. He also said that there is a need to address the prevalent KYC-paradigm and make it highly cost-effective, secure and real-time, by leveraging advances in technology. He also spoke on the need to localise digital offerings by FinTech companies and allow for local dialects, languages for a holistic financial integration. He emphasized that in India, vernacular was the way forward and that financial integration efforts were needed to localise the offerings and allow for local languages and dialects as opposed to using only English for deeper depth, wider audience and greater levels of customers.

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