Reserve Bank of India Governor Shaktikanta Das outlined his vision for India’s financial future, emphasising the transformative potential of blockchain and artificial intelligence (AI) in promoting financial inclusion.
Speaking on the subject at the Global Fintech Festival 2024, Das stated, “Digital financial inclusion has the unique advantages of scalability and cost-effectiveness. The next two decades will predominantly be about leveraging technology to deliver accessible and tailored financial services.”
He highlighted how fintech innovations, such as digital payment solutions, microloans, and affordable insurance, could bridge gaps in traditional banking systems using AI-driven data analytics and blockchain technology.
Blockchain, he explained, can “enhance transparency and traceability in green bond issuances and provide immutable records of project impacts.”
Similarly, AI’s role is expanding beyond traditional use cases. “AI algorithms are already being deployed for fraud detection,” Das noted, further highlighting their utility in credit scoring and customer service, enhancing the efficiency of financial services.
He also talked about the potential of quantum computing as a “game-changing technology with profound implications for cryptography, financial modelling, and risk management.”
Its ability to perform complex calculations at unprecedented speed opens new frontiers in financial innovation. “Quantum-resistant algorithms are being developed to safeguard sensitive financial data from quantum-enabled cyber threats,” he explained.
He also spoke of quantum computing’s promise to revolutionise portfolio optimisation, trading strategies, and risk assessment through its capacity to process vast amounts of data and simulate complex scenarios.
The Governor mentioned the potential of the Internet of Things (IoT) in reshaping the payments ecosystem and insurance sector. IoT devices embedded with sensors can enable “seamless transactions through connected devices such as wearables and smart appliances,” he noted.
In the insurance sector, IoT-driven data analytics can provide real-time insights into policyholders’ behaviour and risk profiles, facilitating personalised insurance offerings and dynamic pricing models. Das emphasised that the collaboration between fintech innovators and IoT developers would be crucial for harnessing the full potential of these technologies.
