India is the best destination for fintech startups and companies, according to Prime Minister Narendra Modi. Speaking at the Singapore Fintech Fest on November 14, Modi detailed how India is experiencing a surge in fintech innovation and enterprise. Furthermore, he explained that it can be used to combat financial crimes in the country, something which has affected 53% of Indian corporations in the past year, according to The Economic Times.
The place to be
Since coming into power in 2014, Modi and his government have helped to bring financial inclusion to almost 1.3 billion Indians. “Technology today is helping them define competitiveness and power in the new world,” he told the audience in Singapore. His efforts have meant the number of Indians with bank accounts has more than doubled in the past four years. In turn, local citizens are able to control their finances on the go and utilize the power of technology. Which, in turn, means better opportunities and profits for the country’s fintech businesses.
Further showing his support for India’s fintech future, Modi has officially launched an online marketplace along with Singapore Deputy Prime Minister Tharman Shanmugaratnam. The APIX promises to connect fintech firms and financial institutions across the world. As a result, Modi aims to achieve financial inclusion and a regulated space in the fintech arena. Varum Mittal, the ASEAN FinTech Leader at EY, is positive that the marketplace will benefit corporations, stating: “This brings access to both sides. Financial institutions can get access to the best of technology. Technology institutions can get access to data and customers and financial institutions.”
The future of India’s fintech industry
During the fintech festival, Modi strongly stated that fintech will reduce the number of financial crimes in India. He went on to claim that fintech products will “reduce risk” and help to tackle money laundering and other financial crimes which can impact India’s institutions by throwing their integrity into question. Additionally, money laundering can hinder their wealth and the ability to achieve recognition from regulatory authorities. Therefore, Modi’s promise that “Fintech will need to be not merely a mechanism but a movement” can’t come soon enough.
Fintech enterprises in India are flourishing and are providing optimum results and opportunities for new and established companies in the country. The local fintech industry has full backing from the government and the PM who continues to back the quick development of the sector.