| |December 20198TRENDS THAT WILL SHAPE THE FUTURE OF INDIAN FINTECH IN 2020By Subhojit Roy, CIO, SBI Mutual Fund he famous quote of Andrew Grove, former CEO of Intel Corpo-ration, that "Only the paranoid survive", in the context of in-novation & change, seems pertinent for FinTech revolution (or evolution). A new wave of innovations, with the help of advancement in artificial intel-ligence, computing power & cryptog-raphy, explosion of big data and reach of internet with smart phones, is accel-erating change in the financial sector. While FinTech is creating new busi-ness models, changing the paradigm of intermediation and enabling finan-cial inclusion, its disruptive nature has thrown up challenges for the policy makers & regulators to deal with financial stability, regulations, consumer pro-tection & financial literacy without stifling the spirit of innovation. Although FinTech in-novation is being largely driven by the private sector, the policy makers across the world have also realized its potential benefits as well as its impact on finan-cial stability. In India, the government IN MY OPINIONT& the regulators have been proactive in shaping the FinTech development through augmenting digital infra-structure and boosting open Appli-cation Programming Interface (API) ecosystem, while ensuring that ad-equate regulatory framework and su-pervisory capacity are in place to meet the challenges. The intentions of the policy makers to promote FinTech in the country are evident through some of the recent initiatives, such as Steer-ing Committee on FinTech related Is-sues of the Finance Ministry and the various initiatives of RBI (like, Pay-ment & Settlement Systems Vision 2019-2021, Working Group on Fin-Tech & Digital Banking and Frame-work for Regulatory Sandbox). Some definite trends have emerged in the FinTech evolution across the world as well as country-specific innovations in the last five years or so. Some of the key trends are summa-rized below:a. As cost, efficiency & ac-cessibility are some of the major bottlenecks of finan-cial inclusion, big technology companies are likely to drive changes in financial services through their ability to scale basic fi-nancial services at low cost. b. FinTech firms currently represent a Subhojit Roy, CIO
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