Finance Minister Nirmala Sitharaman gave four main suggestions to fintech companies at the Global Fintech Fest 2025: focus on business fundamentals, enhance trust and security, collaborate with regulators, and address financial gaps. These measures will enable sustainable and responsible growth for companies.
Finance Minister gave 4 tips: At the Global Fintech Fest 2025, Finance Minister Nirmala Sitharaman provided guidelines to India's fintech companies. She stated that companies should focus on revenue growth, product innovation, and risk management, as well as trust, security, and financial inclusion. Additionally, collaboration with regulators and addressing shortcomings in the financial system are crucial for the fintech sector to grow in a sustainable and responsible manner.
Emphasis on Business Fundamentals
Nirmala Sitharaman stated that fintech companies should focus on their fundamental aspects such as revenue growth, product innovation, risk management, and compliance. She also added that as companies mature, they should continue to innovate while achieving better financial performance and meeting regulatory standards. The Minister explained that companies that maintain a balance between innovation and business can remain sustainable and responsible even in rapidly changing competition.
Fintech companies must focus on sustainable development and long-term profits in their strategies. It is essential that they do not overlook risks and regulations merely in an attempt to grow rapidly.
Trust, Security, and Financial Inclusion
Sitharaman drew attention to the challenges present in the digital fintech ecosystem. She stated that issues like cybersecurity, digital fraud, and unethical lending practices remain significant challenges today. The Minister emphasized that as millions of people are joining the formal financial system, prioritizing trust, safety, and inclusion is crucial.
She also stated that regulations should evolve with time to ensure that the fintech revolution remains safe, responsible, and sustainable. The Finance Minister conveyed to fintech companies that their work is not merely about earning profits, but also about ensuring customer trust and financial security.
Collaboration with Regulators
Nirmala Sitharaman urged fintech companies to collaborate with regulators, share their customers' needs and suggestions, and experiment responsibly. She stated that regulation is not an impediment, but rather like a seatbelt for a safe pace.
The government and the Reserve Bank of India have together created a framework that allows companies the freedom to experiment with new things in a controlled environment. The Minister clarified that companies must maintain transparent communication with regulators.
Contributing to Filling Financial Gaps
The fintech sector should also help fill the small gaps present in the country's financial ecosystem. Sitharaman stated that companies can use their technology and creativity to develop products that address credit difficulties for MSMEs, promote financial inclusion for women and youth, and foster sustainable development.
This will not only expand the business of fintech companies but also benefit society and the economy. The Minister informed that India's fintech sector is growing rapidly, and with efforts in the right direction, it can become capable of competing at a global level.
