WEBVTT

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Very good morning.

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It is a great honor for BCG to be the thought
leadership partner for this platform,

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especially because not only is
this platform being set up to celebrate

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the vibrancy of Indian fintech ecosystem,

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but also it reflects the national
commitment to give back to the world.

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We are deeply honored today to present.

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I will take 3-4 minutes to capture
some of the new insights that we want

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to present and a few recommendations,
ma'am, for your attention.

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The vibrancy of Indian

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fintech ecosystem is globally recognized
now for several years.

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Over next few years, by 2030,

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we predict that the center of gravity

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of the global fintech ecosystem
is going to move towards Asia-Pacific

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and Asia-Pacific
by 2030 is going to overtake North America

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as the largest fintech market in the world
with over $600 billion of revenues.

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What is

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often not recognized is today fintechs
in India, for example,

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have 5% of the revenues
of the banking ecosystem.

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By 2030, we are predicting that
it will be about 20%

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of the revenues of the banking ecosystem
and about 30% of the value.

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This is much larger
than the global averages that we have seen

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across the world.

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For a very good reason
that the Indian ecosystem is driven

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by a national commitment for digital,
supported by government of India,

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and reflected in one of its kind
digital public infrastructure,

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a huge unmet need in financial services,
in the ecosystem,

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and a national support
for startup ecosystem

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and also a facilitative
regulatory environment.

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Ma’am there are two things
that we wanted to recommend that came out

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as to how we can
take these things forward.

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We talk about adding value
to the global financial ecosystem.

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We believe that by 2030, up to $10

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billion of revenues will be earned
by the fintechs in the Indian ecosystem

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by providing software as a service
solutions to the global banking system.

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Now, that is something
that is a very new trend,

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and we believe by 2030
it is going to become very big.

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But in order for it to achieve its true
potential, there are two interventions

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that are needed
and that merit your attention.

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First intervention is about the nature

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of fintechs in our country. In India,
as compared to the rest of the world,

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the FinTechs are more in the nature
of competing

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with the banks than collaborating,
and we need to change that.

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We need to have more fintechs
which collaborate with the banks

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to improve their efficiency,
to increase their reach

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and we have found that the value
there is much larger.

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And in order to do that,

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we have to work with our regulators
to create a more facilitative environment

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where interaction with banks and fintechs
is much more smoother

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Onboarding is much, much faster,
much more easier.

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So regulators have some work to do
both from the banking side as well as from

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the capital market side

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to make it much easier for fintechs
and banks to work together.

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And there is a second one ma’am,

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which is that
while we are globally recognized

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for implementing digital solutions
at scale,

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our track record is not that impressive
when it comes to fundamental research

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in topics like blockchain,
artificial intelligence, quantum

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computing, the next wave of innovation
has to come from there.

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And we need our estimates
are that we need about $100

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billion of investment in public
and private sector

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in Indian fintech ecosystem
in order to take it forward.

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And that requires a lot of tax incentives
to be able to achieve that.

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Thank you very much.