Regulation is evolving in different regions around the world. It has enabled business models, changed the structure of data ownership such that banks today no longer have ownership of data.
One example of a country today who has boosted efficiency in the banking and financial sector is India. India has enhanced financial inclusion through adopting new technologies known to most of us in FinTech in applications such as artificial intelligence, big data, biometrics, and distributed ledger technologies (DLT) such as blockchains.
The launch of Vizag FinTech Valley in 2016 is an initiative of the Government of Andhra Pradesh to promote business infrastructure in the state to offer monetary, regulatory and infrastructural support to attract exceptional talent in a bid to grow the city. Their two pilot projects involve using technology to solve land registry problems and improve efficiency of the state vehicle’s registration process.
Image credits to Coincryptorama
Belfrics Global, one of the fastest growing Blockchain Development start ups in India has signed an MoU with the Andhra Pradesh government to develop AP as a FinTech hub of India to help the government run its day to day affair in a smooth and systematic manner.
The first cohort programme conducted under the Vizag FinTech Valley accelerator programme has also been successfully completed with two out of the 8 start ups selected to work with the State government.
Image credits to Economic Times
Fintech startups in India fall under the broad categories of payments, lending, and wallets. In India, IndusInd Bank has enterprise blockchain solution for global payments, Ripple’s global payments network and real-time gross settlement system, RippleNet. With this, IndusInd Bank is looking to build on its existing footprint in the payments business. India is seeing many efforts for global collaborations and most of them are from state governments. The Vizag Fintech Valley is looking to work with the Government of Maharashtra and build a corridor between Maharashtra and Vizag.
The India government has also formed a Steering Committee to explore a regulatory sandbox model in order to critically analyze the regulatory regime spread over different entities that has impacted the growth of FinTech in India. To drive growth and acceleration in critical sectors of the economy, it will study and develop regulatory interventions by allowing financial institutions and Fintech start-ups to experiment in a safe space and without the need for an expensive wider roll out, with the attendant risks for the companies as well as customers. Sandboxes also provide financial regulators an opportunity to learn about the risks associated with new technologies and adjust their regulation accordingly.
With a country that large, their existing unbanked and rural population will largely benefit from the technology sector. What exactly does a FinTech ecosystem need? Some of its key enablers include policy framework, availability of growth capital and investment, as well as future skilled human capital. Access to early stage funding is identified as a strong driver by Indian and global FinTechs in order to assist in R&D, testing and company registration.