Banks have no option but to partner with fintech, says K V Kamath

'India will be a $25 trillion economy in 25 years, digital India will drive 20-25% of this growth'

National Bank for Financing Infrastructure and Development (NaBFID) Chairman K V Kamath on Thursday said banks had no option but to collaborate and digitise with fintech companies.

Kamath said fintechs had immense potential to both disrupt existing systems and engage in collaborative efforts. “They stand poised to expand their presence not only in India but also on a global scale,” he said at the Global Fintech Fest.

“Banks have no option... The ability of the people in this fintech event to disrupt and collaborate is enormous. Digitisation of existing players can prove to be a disrupter,” said Kamath, who is also the chairman of Jio Financial Services, an arm of Mukesh Ambani-led Reliance Industries.

He said India would be a $25 trillion economy in 25 years and digital India would drive 20–25 per cent of this growth.

“Digital India will contribute not less than between 25–30 per cent in this $25 trillion journey. We are looking at a big chunk of growth coming from the people in this room,” he said.

Kamath said India currently excelled in virtually every digital domain, and commended the nation’s swift progress across digital sectors, underscoring its increasing impact on the global stage.

The veteran banker also stressed the significance of profitability within the fintech sector. “Growth without profit is unsustainable and short-lived,” he said.