Budget FY24-25: Top-notch security and digital prowess for fintech

January 27, 2024

The fintech industry is eagerly awaiting the Union Budget for FY24-25, with expectations for new innovations, strengthened cybersecurity, and an expanded KYC framework. The industry believes that empowering the fintech segment in Tier-II and beyond with robust solutions is crucial for economic empowerment and is hoping for strong measures from the budget. Experts in the industry stress the importance of strengthening cybersecurity frameworks to ensure secure digital transactions and maintain user trust. They also emphasize the need to expand fintech services into underserved regions to enhance financial inclusion nationwide. Furthermore, stringent measures against digital fraud are seen as imperative to safeguard digital payment ecosystems.

Fintech stakeholders are particularly interested in the expansion of the digiLocker system for KYC purposes. They believe that integrating data such as credit scores, insurance plans, and registration status can create a strong KYC framework and contribute to a safer digital financial ecosystem. Fintech professionals also expect constant simplification and enhancement of customer experience to encourage more people to use digiLocker. Additionally, they suggest adding passports to the digiLocker wallet to help Non-Resident Indians (NRIs) access financial products in India and facilitate engagements with infrastructure-building innovators.

Consolidation of India’s various public infrastructures is also recommended by experts in the fintech industry. They argue that bringing together different data trails will lead to comprehensive and actionable data that can be utilized by fintech startups to create innovative products and services. Fintech has experienced significant credit growth, surpassing the Rs 50 trillion mark for retail loans, and experts anticipate the budget to introduce direction-setting measures to support further credit growth, financial inclusion, and digital enablement of financial services.

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