“We need a technological solution to expand the reach of a large segment of the population that does not have banking facilities and does not have a smartphone,” he said.
He said fintech promises to prevent fraud, which has become clear as the pace of digital penetration erodes awareness.
He further noted that incidents of digital fraud have increased during the pandemic and cited data about fraudsters intensifying their efforts in the financial services industries.
“…we need to focus and focus all our attention on reducing digital fraud…we need to defend ourselves against digital fraud and Cyber crimes,” Shankar insisted.
He further added that both regulators and other stakeholders will have to play their respective roles effectively to ensure that innovation in the fintech sector continues to support India’s economic growth.
“…we are in the best of times, with the promise of technological innovation in finance and the hope of substantial efficiency gains, better customer experiences and greater social welfare, but we also need to tackle the threats of online fraud. Customer credit, data privacy and security,” said the deputy governor.
Shankar also said that fintech can play an important role in real-time cross-border payments, which have been stalled for decades.