How can fintech level up? PM's guide to unlocking potentials, tune in.
Watch on YouTubeVideo summary
The video argues that while technology serves as a powerful tool for financial inclusion, the fintech sector must evolve beyond its current dominance in payments to unlock greater potential. Although UPI has successfully extended banking services to remote areas where traditional models could not reach, the industry now needs to expand into credit, insurance, savings, investments, and pensions. This shift is essential for a developed India, as it allows fintech to address economic segments that remain out of reach for conventional financial institutions, thereby unleashing the country's hidden strengths.
A prime example of this evolution is the success of the PM SVANidhi scheme, which connected millions of street vendors to the formal credit system with the support of UPI. This initiative not only provided these entrepreneurs with access to formal credit through a dedicated card but also significantly boosted their average annual income by over 20%. The benefits extended beyond income, greatly improving living conditions in areas such as housing, nutrition, healthcare, and children's education, leading the government to extend the scheme until 2030. This success demonstrates how fintech can effectively serve small businesses that traditional banks often overlook due to their size or lack of collateral.
Looking forward, the next chapter of fintech will focus on analyzing the economic activities of these smaller enterprises to design tailored financial models for them. The video illustrates this with the story of a shop owner who has moved beyond basic survival and now requires capital to scale her business; traditional credit models are often too rigid for such needs, whereas fintech can efficiently analyze her digital transaction patterns to provide appropriate funding. Similarly, the sector must make essential services like savings, pensions, and insurance accessible to gig workers and delivery partners who earn monthly incomes but currently lack easy access to these products.
Ultimately, the goal is to replicate the simplicity of making a QR code payment for complex financial needs, ensuring that services are as easy and accessible for everyone. By leveraging technology to study diverse economic activities and creating curated solutions, fintech can help increase the share of non-payment transactions in the market. This approach will not only support the growth of small businesses and informal workers but also ensure that the benefits of the digital economy reach every corner of society, fulfilling the promise of true financial inclusion.
Read the full video transcript
Friends, technology is the most
effective tool for inclusion, and UPI
has proven this. When it comes to
fintech, its unique feature should be
reaching those places. Where
traditional models could not reach.
Where traditional banks could not reach
. Where bank branches could not reach.
UPI has taken the banking system to
that place and to that person. Friends,
today a large part of the fintech
market is just about payments. But now
we have to take it to the next level
from here, and move fast. Now, along
with payments, the share of credit
transactions in the fintech market
should also increase. The share of
insurance should increase. The share of
savings, investments, and pensions
should increase. Friends, I believe
fintech can unleash that strength of
the country which is currently out of
the reach of traditional financial
models or is not being addressed
properly. For a developed India, the
emergence of this strength is very
necessary. Friends, what is its impact?
We are all seeing this through the
success of PM SVANidhi. Our street
vendors are the backbone of our cities.
But they were outside the country's
banking system and formal credit system
. PM SVANidhi connected lakhs of street
vendors in the country to the formal
system. And now these friends also have
the SVANidhi credit card. Meaning, they
have a tool for formal credit access.
And studies show that the average
annual income of these SVANidhi
beneficiaries has increased by more
than 20%. Not only this, but it has
also greatly improved their families '
housing, nutrition, healthcare access,
and children's education. That is why
the government has also decided to
extend the scheme until 2030. Friends,
PM SVANidhi would not have achieved
this success if UPI did not exist. UPI
has played a huge role in the success
of this scheme. Learning from this
experience, we have to increase
economic activities using the power of
fintech. I will give you an example
from the world of capital and credit.
There is a sister who runs a small shop
. She receives digital payments every
day. Now a clear pattern is visible in
her income and expenses. Her business
is doing quite well. She has moved
beyond the level where little capital
was enough. Now she needs goods and
equipment to scale up her business, and
for this, she needs a little more money
. This is not a very large credit, and
that sister's business is still so
small that traditional credit models
cannot serve her efficiently. These are
the types of businesses whose needs
fintech can analyze, anticipate, and
address. And the number of such
businesses is very large. Friends,
technology can be very useful for us in
studying the economic activities of
such businesses and designing curated
models for them. I believe that the
next chapter of fintech will be written
right here. We have shown speed and
scale in payments. Now we must help in
increasing the share of non-payment
transactions. For example, a delivery
partner or someone doing odd jobs earns
every month. But they need access to
services like savings and pension
products. Fintech can address the needs
of such people. Similarly, fintech can
also make access to insurance products
and other financial services easier.
All of this can be as simple, easy, and
accessible as it is to pay with a QR
code today.