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Contents
What is the News?
The Prime Minister has inaugurated InFinity Forum, a thought leadership Forum on FinTech.
Click Here to read about the InFinity Forum
What is Fintech?
Fintech (finance and technology) refers to any business that uses technology to enhance or automate financial services and processes.
What are the pillars of Fintech?
India’s financial inclusion efforts were the driver of the ‘fintech revolution’.Fintech is resting on four pillars – income, investments, insurance and institutional credit.
When income grows, investment becomes possible; insurance covers enable greater risk-taking ability and investments, and institutional credit brings means for advancement. Hence, when all those factors come together, one will suddenly find a large number of people embracing fintech innovation.
India’s Financial Inclusion Initiatives with the help of Fintech
Mobile payments in India exceeded ATM cash withdrawals for the first time last year.
The government has universalised bank accounts with 430 million Jan Dhan accounts in the last seven years from less than 50% of Indians having bank accounts in 2014.
UPI is processing around 4.2 billion transactions in just last month
PM Svanidhi enabled access to credit for small vendors across the country
e-RUPI enabled targeted delivery of specified services without leakages.
Suggestions to improve FinTech
Fintech firms should focus on ensuring greater security in their transactions to retain the trust of people who have embraced digital payments and financial technologies.
Source: This post is based on the article “PM inaugurates InFinity Forum, a thought leadership Forum on FinTech” published by PIB on 4th December 2021.
