Mint BFSI Summit and Awards Highlights: Fintech are bringing a lot of value through innovation, says NBFID chairman

There's great synergy in the geographies they serve. One is very focused on MFI. The other started as a vehicle financier. I think there is great synergy and the combined entity will come out very strong.

Small finance banks today have 25 million accounts. So we have touched the lives of 100 million Indians. That means, SFBs have under 7 years, touched the lives of 7% of India's population, said Inderjit Camotra, MD & CEO, Unity Small Finance Bank

If, as a payments bank, you look at only UPI-based solutions, the path to profitability could be difficult. A lot of payment companies are now looking at how we use the data of the millions of customers who come to us every month, said Rishi Gupta, MD & CEO of FINO Payments Bank. He added that if you just focus on products that are at zero MDR right now, then there cannot be profitability.

Fintech companies are today more ready than they ever were a few years back to list on bourses, says Nirav Shah, managing director, Equirus Capital. They have realised that the business has to be not just high growth but sustainable and profitable before tapping the IPO market, Shah said.

The companies should work with the regulator to build trust and have transparency that needs to be maintained if they have IPO ambitions. The VC investors are likely to pay 15-year forward valuation but have a 4-5 year investment horizon whereas a public market investor might pay only a one-year forward valuation but are likely to stay with you longer, Shah said.

Richa Choudhary, partner- capital markets, Trilegal said, "Although the movement has been slow in the fintech IPO area, it is likely to pick up pace as now the market is prepared having learned from Paytm IPO, which was the first fintech IPO so to say.”

Kunal Varna, CEO, Freo, said, "Anyone who was predicating their business models around regulatory arbitrage had to go back to the drawing board to realign the business. But the good part is that most players were not doing this."

The insurance industry is categorised for using jargon. We are looking into simplifying the policy document. A report is expected soon.

We are considering a sunset clause of three years on regulations for policy dynamism. From 100 odd regulations, we are hoping to have 15-odd regulations to streamline industry growth.

We engage with CEOs of insurance companies on a quarterly basis to understand challenges. It is called Bima Manthan. Feedback received from the industry made us start a customer information sheet which simplifies policy details.

Unique Bima Trinity is being conceptualized. Bima Vistaar Bima Vahak and Bima Sugam for seamless delivery of insurance products.

Bima Sugam, a regulatory electronic marketplace will remove information asymmetry and democratise it.

The support that we have received from state government on state-level insurance is tremendous. It is key to universal insurance coverage before 2047.

The insurance industry has matured. The evolving landscape demands more freedom which needs regulatory overhaul. We undertook a 360-degree evaluation. It was found there are hindrances to the industry’s growth even in launching a new product.

A revised framework was put up for more consultants and a new landscape was set in to promote competition and innovation. Regulatory processes have been simplified. Use and file is now possible.

We have InsureTech team within IRDAI. Insurers are being nudged to adopt AA framework. 27 of them have registered.

The future will be shaped by young Millennials and Gen Z. Do-it-yourself or DIY approach is needed for them. Similarly, senior citizens also need attention. The insurance industry needs to look into it.

The next decade is paramount for the insurance industry. We need to build an ecosystem where premiums are no longer one size fits all but individual risk profiling.

Cashless claims have become a norm. Travel insurance, has been possible in foreign countries also.

India’s insurance sector ranks 10th and is expected to reach sixth soon.

The insurance industry has the aggregate ₹16 lakh crore assets under management. 5 new insurance companies have entered the market.

The biggest game-changer for the BFSI industry has been the JAM trinity. The Pradhan Mantri Jan Dhan Yojana, Aadhaar, and mobile connectivity have taken financial access to the last mile. Pradhan Mantri Mudra Yojana added a further fillip.

In Insurance, Pradhan Mantri Jeevan Jyoti Beema Yojana and Pradhan Mantri Surakha Yojana are doing a similar job.

Pradhan Mantri Jan Aarogya Yojana from the health segment is complimenting the Pradhan Mantri Aayushman Bharat Yojana. For unorganised sector, the Atal Pension Yojana is going on.

Debasish Panda, Chairperson, Insurance Regulatory and Development Authority of India (IRDAI) speaking on 'Insurance's innovation agenda'

What is innovation? It is nothing but a powerful idea that changes the entire ecosystem. For instance, what UPI has done to the payments infrastructure.

The MF advisory committee has given us suggestions. Those suggestions are being tested out with data. Once it is done, we shall put it up for public consultation.

Can we design a product with less regulatory oversight for savvy investors? We will come out with a consultation paper on the same. Difficult to comment on the timing of it.

The 1300-RIA figure is quite low. I agree that most people giving advice should be in the advisory framework. If changes are needed in regulations, we need to do it. We are examining it. We have received feedback from the industry. We are waiting for the report of the working group committee. We are in touch with Google, YouTube, and others that if somebody violates the securities law, the content must be taken down.

We are also examining the issue of regulated entities making payments to finfluencers.

There is nothing wrong with short-selling. Sebi has had a view that it should not be banned. It helps in price discovery. Our submission to the Supreme Court was that it should not be banned but regulated.

This is a reiteration of our 2009 circular. Nothing has changed in our position. No country will allow you to put your hands up on the settlement day. It is acceptable everywhere that your positions should not be naked when settling trades.

Just because the US has done it doesn’t mean we also do it. The eventual decision has to come from the ministry.

Sebi working group committee is analysing the finfluencer issue. Our first task is to have them under regulatory net so that we control wrongdoings. We are taking inputs from the industry.

India is aiming to be a developed country. We need to improvise ourselves to be even better. We need to keep in mind the speed of the change so that the industry absorbs it well.