According to a statement issued by the organizers, the minister who spoke on this occasion said: “Fintech has revolutionized the financial services sector and has the potential to support SMEs and the startup sectors. Our government will deliver on the Prime Minister’s vision of transforming Mumbai into a global fintech hub.”
“The Maharashtra government will roll out a red carpet for SME and startup projects on par with mega projects as micro, small and medium enterprises are the pillars of our economy. If India aspires to become a $5 trillion economy in the next few years, Maharashtra will contribute significantly towards this goal with the target of a $1 trillion economy,” he said.
He expressed the government’s intention to revive the ailing industries, especially MSME units in Maharashtra and sought support from WTC Mumbai and AIAI in this initiative.
“Given its large population, the sector has seen rapid growth over the past five years, attracting significant investment and global attention. Our country is the third-largest fintech service provider in the world, with 87% fintech adoption, compared to the global average of 64%. India received 15% of global fintech funding,” said V. Anantha Nageswaran, Chief Economic Advisor to the Government of India.
The digital lending market was valued at $270 billion in 2022 and is expected to have reached $350 billion last year, Nageswaran added.
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Speaking at the event, Nidhi Choudhari, CEO & Nodal Officer, Maharashtra State Innovation Society, said, “Maharashtra has the largest number of fintech startups in India, especially in Mumbai, which provides a fertile ground for fintech startups. Our innovation society supports startups in obtaining national and international patents and quality certification; there are many incubation centres in Mumbai and over 28 of them are supported by us. We offer grants of up to Rs 50 crore for incubation centres.”
At incubation facilities, startups get seed capital grants and accelerator support.
“We have two funds exclusively for startups – Maharashtra Innovation and Transformation Capital supported by IDBI Capital and another Rs 100 crore fund with SIDBI supported by the World Bank,” Choudhari said.
Winners of the state-wide startup competition are awarded work orders by the Maharashtra government. As per the government procurement policy 2016, support is provided to startups in procurement up to 10% of work orders from government departments, with waiver of earnest money deposit (EMD).
“Mumbai has the second fastest growing fintech ecosystem in the world and is poised to become the global fintech hub. I am confident that the city will produce more fintech unicorns in the coming years,” said Ashish Shah, Director, Division of Country Programmes (DCP), Geneva International Trade Centre.
Highlighting the potential of India-Africa partnership in fintech, Shah said Africa is where the fintech industry is dynamic and vibrant.
“I call on Indian companies to seize the opportunities offered by fintech in Africa. Nearly 50% of Africans are unbanked, which presents a huge opportunity for Indian companies to offer fintech solutions. Indian fintech companies can benefit from a unified marketplace under the African Continental Free Trade Agreement (AfCTA),” Shah said.
In his welcome remarks, Vijay Kalantri, Chairman, World Trade Centre Mumbai and President, All India Association of Industries (AIAI), suggested the state government to revive SICOM and Maharashtra State Finance Corporation to boost MSME financing in the state.
Speaking on the occasion, Rupa Naik, CEO, WTC Mumbai, said, “Fintech solutions can bridge the Rs 19 trillion credit gap faced by the SME sector in India. Better access to credit can help SMEs scale up their capacity, generate more jobs and contribute more to the GDP.
In his remarks, Somesh Batra, Vice President, WTC Mumbai, said, “India aspires to be the global fintech capital and we need continuous innovation to achieve this milestone. We already have cutting-edge technologies like blockchain and its application in fintech segments like InsurTech and WealthTech.”
Fintechs are enablers as well as disruptors. As enablers, fintechs can provide businesses with smart banking and payment solutions. At the same time, we need to ensure prudent implementation of fintech solutions with minimal disruption to business activities.”
Carolina Quintana, Asia Pacific Director of the World Federation of Retail Points, said: “As technology evolves, more savings, insurance and other financial services will emerge. I represent a Swiss association that improves the trust of organizations through certification, so that certified companies can access financial services and the global market.”
Jayakumar S. Pillai, Deputy Managing Director, IDBI Bank He said the RBI’s technology environment, innovation centres, artificial intelligence, machine learning and blockchain are shaping the evolution of fintech.
Anindya Sunder Paul, Chief Executive Officer, SMEBU, State Bank of India He said that fintech can play a pivotal role in realising the Government’s vision of Viksit Bharat and a digitally empowered nation.
“Today, 97% of SBI’s transactions are done on digital platforms, 63% of our savings accounts are opened digitally through our Yono app. In the credit assessment and delivery system, be it agriculture, MSME, housing loans or auto loans, we have adopted digital technologies for frictionless credit. We have introduced pre-approved business loans for MSME units, where even the documentation is done digitally,” he said.
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