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The Indian fintech market is forecast to reach $150 billion by 2025, according to Startup India, an initiative by the Ministry of Commerce and Industry. However, despite the immense potential, it poses unique challenges due to its diversity and massive population.

On Day 2 of TechSparks 2024 Bengaluru Edition, a panel focused on India’s burgeoning fintech sector, with experts examining the challenges and opportunities in developing scalable financial products.

‘Scalable fintech products: Building for a billion’ brought together industry leaders, including Rohan Khara, Chief Product Officer at BharatPe; Akshat Kansal, Chief Technology Officer at Kiwi; and Takahisa Ohira, Head of Asia Region at Deloitte Tohmatsu Venture Support; to discuss the path forward.

The conversation kicked off with a fundamental question: what does scale mean in the context of fintech?

Rohan Khara said that scale for BharatPe is a multifaceted concept that includes user experience, business sustainability, and, most importantly, responsibility. “The scale in fintech is closely tied to how we manage information security and transparency with users, especially in how we handle their data,” Khara said. This underscores the growing importance of data responsibility in product innovation.

Akshat Kansal, of Kiwi, took a broader view, linking scale directly to impact. “Scale is a function of impact,” he remarked. “For any product, fintech or not, the level of change it brings to users is reflective of its scale. In fintech, we aim to transform lives, and the greater that transformation, the more scalable the product becomes.”

Taking a global perspective, Takahisa Ohira explained the importance of strategic partnerships. Reflecting on his experiences of working with over 200 startups in Japan,. Ohira said, “business alliances are crucial to scalability”. “The Indian fintech industry can learn a great deal from Japan in this respect, and there is considerable potential for collaboration between both countries,” he said.

The discussion delved into India’s financial landscape, which spans urban and rural areas, rich and poor demographics, and varying levels of financial literacy. Kansal said Kiwi bridges gaps through innovations such as UPI on credit cards, which help improve access to and acceptance of credit products. “With credit being an essential tool for consumption and growth, especially as India aims to become a $5 trillion economy by 2027, Kiwi’s efforts are focused on making credit more available and easily accepted,” Kansal said.

The conversation then turned to BharatPe’s newest product innovation, BharatPe One. Khara described this device as a consolidated device that combines the functionalities of a point-of-sale machine and a sound box, and is designed to reduce clutter for small business owners. “Our research showed that merchants were struggling with space constraints. By integrating these two essential tools into one device, we have developed a space-efficient and cost-effective solution,” Khara said.

When discussing emerging trends in fintech, AI and Generative AI (GenAI) emerged as pivotal factors driving seamless customer experiences. Kansal highlighted Kiwi’s use of AI to enhance the credit card journey, from onboarding to repayment. AI models have enabled creation of smoother user experiences, leading to an increase in customer acceptance and satisfaction, he said.

The session ended with an overview of future collaborations between India and Japan in the fintech space. Ohira highlighted Japan’s booming investment scene and suggested that Indian startups grab the opportunity to take advantage of the capital and expertise available in Japan.

The discussion spotlighted a powerful truth: building for a billion involves more than just numbers; it means nurturing relationships and empowering individuals throughout their financial journey.

The future of fintech in India hinges on a balance between innovation and trust, in which each user feels secure and empowered to take charge of their financial future. As we move forward, it’s vital to remember that fintech is not just about technology, but about transforming people’s lives as we unlock the potential of a billion users.