Inaugurating the annual Global Fintech Fest 2023, Finance Minister Nirmala Sitharaman emphasised the importance of accessible technology and global cooperation in developing an inclusive, resilient and sustainable financial ecosystem.

"Technology, I see, is the common tool available for all countries," Sitharaman said, adding, "Tech is the tool through which we are going to bring a lot of changes."

During her speech, the FM emphasised that while some countries may use technology more effectively, others may use it strategically, some selectively and some others "probably are yet to have that milestone reached to make a reckoning difference in using technology to influence the financial ecosystem."

Hence, in a "multipolar world" where technology itself is evolving, Sithraman highlighted that the biggest challenge is to build a responsible financial ecosystem and global cooperation stands as an "absolute necessity" at this junction.

For LIVE updates on the Global Fintech Fest 2023, check here.

Amidst a worldwide debate on globalisation, the finance minister pointed out another hindrance to developing an equitable financial world: disparities. These include disparity in "temptation," wealth, demography, access, well-being and digital literacy.

Sitharaman further highlighted some threats to financial ecosystems. These were namely:

physical border threats such as conventional warfare

cyber threats and their intensity, unpredictability and depth

crypto threats and opportunity

drug, drug worlds and drug mafias

tax havens

round-tripping of resources

tax evasion

She summarised her argument by pointing out that as building a responsible financial ecosystem is important, it needs to be inclusive, resilient and sustainable. Keeping in mind the aforementioned challenges and threats that are active, the question in mind is how do we go about building that responsible financial ecosystem? The answer is the use of technology as a tool to ensure that each of these areas is addressed, Sitharaman said.

"But, for the tool to be effective, the key is global cooperation and it is absolutely critical," the finance and corporate affairs minister added.

She went on to highlight ways in which in the face of rapid developments, "India is leading from the front."

Sitharaman highlighted India's achievements in financial inclusion, citing a significant increase in demat accounts, record numbers of SIPs registered, and substantial growth in assets under management in the mutual fund industry. She emphasised that financial inclusion is reaching beyond metropolitan areas, benefiting backwater towns. The government's efforts, including initiatives like UPI and ONDC, are contributing to greater financial inclusion.

India can lead in making the financial ecosystem inclusive, resile and sustainable, the finance minister asserted.

"We have the tool but we have to make it responsible. There is only one key: global cooperation and for that, cross-border collaborations are essential," Sitharaman reiterated, concluding her speech.

In the end, she took questions from the audience, during which she jibed at Kris Gopalakrishnan, the Chairman of Axilor Ventures, for choosing a majority of men to ask questions.

"You don't seem to want to recognise women," Sithraman said. Her comment was met with laughter from the audience.

The esteemed Global Fintech Fest 2023 features over 100 countries, 800 speakers and 50,000 delegates this year.

The Global Fintech Fest 2023, the fourth edition of Asia's largest fintech fest, is taking place from September 5-7, 2023, at the Jio World Centre in Mumbai. The theme of this year's event is "Global Collaboration for a Responsible Financial Ecosystem that is Inclusive, Resilient and Sustainable."

First Published:Sept 5, 2023 1:45 PM IST