The Budget has made a significant push towards reforming the financial sector and adding vitality to it, Chief Economic Advisor CEA) Krishnamurthy Subramanian said.
He added that India’s financial sector has not really grown as fast as it should have and is still very, very small.
The CEA was speaking at the Dun and Bradstreet BFSI & FinTech Summit 2021, which was held on Friday. Subramanian said while India is the fifth largest economy in the world, the largest Indian financial institution SBI is ranked 55th in the world.
“On the other hand, countries which are a mere fraction of India’s size have several of their financial institutions featuring among the top 100 in the world,” news agency PTI quoted Subramanian.
He added that financial technology can play a significant role in improving both the quantity and the quality of the financial intermediation in the country.
Since the outbreak of the COVID-19 pandemic, the entire business landscape has shifted to a low-contact and even zero-contact environment. For the Banking, Financial Services and Insurance (BFSI) sector, which traditionally required a great deal of personal connect and trust, the current situation has forced a dramatic change in the way services are delivered to customers, said the Dun and Bradstreet.
The Indian BFSI sector, which contributes to about 6% of the country’s GDP, has also embraced the adoption of financial technologies.
They are increasingly deploying cloud, Artificial Intelligence (AI), Machine Learning (ML), Robotic Process Automation (RPA), Big Data and Analytics, and API open banking, among other advanced technologies to enhance customer experience, improve risk management strategies, simplify businesses processes, harness innovative payment systems and elevate business outcomes.
Partnering with FinTechs and riding on the FinTech wave certainly promises to usher in a long-lasting digital culture that will open up a wide range of opportunities and possibilities for the sector, the company added.
Economic Advisory Council to the Prime Minister (EAC-PM) Chairman Bibek Debroy said the worst of the Covid-19 crisis, economic activity wise, is over and we can look forward with some optimism for the economy in general, the news agency PTI reported.
The Dun & Bradstreet ‘BFSI and FinTech Summit 2021’ was attended by CMDs/CEOs/CTOs/EDs/Business Heads and other senior management personnel from the BFSI sector, leaders from other corporate sectors, senior officials from the Government and its ministries, and agencies and policy makers.
At the event, ‘India’s Leading BFSI and FinTech Companies 2021’ was released.
