Fintech has democratised financial services, success unmatched: PM Modi

Companies have 'amazing innovations' to create trust among people, he says

Fintech has democratised financial services in the country by making loans, credit cards, investments and insurance widely accessible, said Prime Minister Narendra Modi on Friday, saying the sector's adoption is "unmatched".

The "fintech revolution" has enhanced the dignity and quality of life for Indians, he said at the Global Fintech Festival in Mumbai, noting that companies have made credit access easier and inclusive.

Investing in equity markets and mutual funds was limited to big cities but is now being explored in rural areas due to new-age players, said Modi, adding that the time taken to open demat accounts has reduced significantly.

Fintech’s achievement is not limited to innovation but extends to adoption. “The scale and speed at which India’s population has adopted fintech is unmatched,” he said, adding that the Digital Public Infrastructure (DPI) and fintech companies deserve a lot of credit for this.

“Fintechs have made amazing innovations to create trust among the population for the DPIs. Integrating QR codes with sound boxes is one such innovation. The journey from currency to QR codes took ages, but now we see new innovation every day."

According to Modi, the fintech sector in 10 years has got more than $31 billion in investments and it has grown by 500 per cent. Inexpensive mobile phones, cheap data and zero-balance Jan Dhan accounts have helped financial inclusion. Broadband users in the country have grown from 60 million to 940 million.

Technologies like ‘Digital Twins’ will take data-based banking to the next level by improving risk management, fraud detection and customer experience.

“Today, over 530 million people have Jan Dhan bank accounts. Over the past ten years, we have successfully integrated the banking system with a population equivalent to that of the European Union,” he said about the government's financial inclusion programme that completed 10 years this week.

The trinity of Jan Dhan, Aadhaar, and mobile has resulted in India processing almost all of the world's real-time digital transactions, Modi said, adding that Jan Dhan has become one of the largest platforms for women’s empowerment, having facilitated the opening of 290 million bank accounts for women.

“Based on the philosophy of Jan Dhan accounts, we launched the Mudra scheme. Through this scheme, over Rs 27 trillion in credit has been disbursed, and over 70 per cent of the scheme’s beneficiaries are women.”

“The Jan Dhan programme has managed to be a successful foundation for women’s empowerment,” he added.

Indian banking works 24/7 throughout the year. Even during Covid-19, India was among the countries where banking services remained uninterrupted.