Fintech industry garnered $31 bn investment, startups saw 500% growth in 10 yrs: PM Modi at Global Fintech Fest 2024

“In the last 10 years, the fintech industry has received a record investment of more than $31 billion along with witnessing a startup growth of 500 percent,” Modi said in Mumbai at the Global Fintech Fest organised by National Payments Corporation of India and the Fintech Convergence Council.

He emphasised the role played by affordable mobile phones, inexpensive data and Jan Dhan Bank accounts starting with zero balance in the fintech revolution.

“Today, the total number of broadband users in the country has increased from 60 million to 940 million,” Modi said.

There is hardly any 18-year-old in the country without an Aadhaar, a digital identification.

“Today, more than 530 million people in the country have Jhan Dhan accounts. In a way we have connected a population equivalent to that of the entire European Union to banks in just 10 years,” he added.

The fintech revolution has helped in bettering the lives of ordinary Indians, he said. From street vendors to high-end shopping malls—all are connected to fast payment network, allowing enterprises of all sizes to do business.

“India’s UPI has become a major example of Fintech in the world,” the Prime Minister said adding that it has enabled 27 X 7 banking services in every village and city in all weather conditions.

Recalling the Covid pandemic, the Prime Minister said that India was one of the handful of nations in the world where the banking system remained uninterrupted.

More than 29 crore bank accounts have been set up for women so far opening up new opportunities for savings and investments.

“So far, Mudra Yojna has disbursed a credit of Rs 27 trillion with 70 percent of the beneficiaries of this scheme are women,” Modi said.

Jan Dhan accounts are also used to connect self-help groups with the banking system and have benefited 10 crore rural women.

Digital technology has introduced transparency in India and gave the example of the implementation of Direct Benefit Transfer used in hundreds of government schemes that has prevented leakages in the system.

“Today, people can see the benefits of aligning with the formal banking system,” the Prime Minister said.

Fintech has made access to credit easy and inclusive. For example, PM SVANidhi scheme that has enabled street vendors to avail collateral-free loans and further expand their business with the help of digital transactions.

Prime Minister highlighted that services such as digital banking, remote healthcare services, digital education and skill learning would not be possible without fintech. “India's Fintech revolution is playing a big role in improving the Dignity of Life and Quality of Life,” Modi added.

The Digital Public Infrastructure (DPI) for bringing in this transformation, adding that amazing innovations have been made in the country to create trust regarding this technology.

Referring to the modern-day concepts of Digital Only Banks and Neo-Banking, the Prime Minister said, “The 21st-century world is changing at a fast pace and while the journey from currency to QR (quick response) codes took us a while, we have been witnessing innovations daily.”

Hailing the Digital Twins technology, Modi said it is going to change the way the world has been assessing risk management, evaluating fraud detection and providing customer experience.

Noting the advantages of Open Network for Digital Commerce (ONDC), the Prime Minister said it is making online shopping inclusive and connecting small businesses and enterprises to bigger opportunities.

Today, account aggregators are using data for smooth functioning of companies, the liquid and cash flow of small institutions are improving due to trade platforms and a digital voucher like e-RUPI is being used in many forms, Modi said, adding that these products are equally useful for other countries of the world. 

“India has called for a global framework for AI,” the Prime Minister said, noting that the use of sound boxes along with QR codes is one such innovation.

He also urged India’s fintech sector to study the government's Bank Sakhi program. He highlighted the efforts of the daughters in spreading banking and digital awareness in every village thereby giving a new market to fintech.

The Prime Minister underlined that the government was making all necessary changes on the policy level to assist the Fintech sector and gave examples of doing away with Angel Tax, allocating Rs 1 lakh crores to encourage research and innovation in the country and implementing the Digital Personal Data Protection Act.

Expressing the need to put an end to cyber fraud, the Prime Minister urged the regulators to initiate huge steps to boost digital literacy. He said that it is equally important to ensure cyber fraud does not come in the way of the growth of fintech and startups in the country.

Concluding the address, the Prime Minister expressed confidence that India’s Fintech ecosystem will play a huge role in providing a quality lifestyle to the people of India.

“I am confident that India's Fintech ecosystem will enhance the Ease of Living of the entire world. Our best is yet to come,” the Prime Minister said.

The Prime Minister expressed the belief that he would be present in the 10th edition of GFF, five years later.

Before the conclusion of the event, the Prime Minister posed for a selfie with the gathering and explained that with the use of AI, anybody who finds themselves in the photograph can get access to it by visiting the photo section of NaMo app and uploading their selfie.

Governor of Reserve Bank of India Shaktikanta Das and Chairman of GFF Kris Gopalakrishnan were present on the occasion among others.