Based on Budget 2017: Placing Cornerstone for Future of Fintech, S P Jain School of Global Management Launches Professional Postgraduate Program in Fintech
MUMBAI, February 2, 2017 /PRNewswire/ --
Finance Minister Arun Jaitley tabled his fourth Union Budget on February 1. Being the first paperless budget to get tabled, it allows for expedited implementation and efficient utilization of planned allocations right from the start of the new financial year. It also merged the railway budget with the union budget. At its core, it makes a brave attempt to bring operational transparency, reduce corruption while broadening the tax base with a well-balanced carrot and stick approach.
With the Government's recent demonetization drive and increased focus on less-cash economy, it was expected that the Budget will provide some boost to sectors dealing with micro-payments, financial inclusion, micro-ATMs and emerging technologies that support digital banking and direct benefit transfer (DBT).
As quoted by the Finance Minister, "Digital Economy has a transformative impact in terms of greater formalization of the economy and mainstreaming of financial savings into the banking system. India is now at the cusp of a massive digital revolution."
While this Budget partially delivered on its promise on that front through the JAM (Jan Dhan-Aadhaar-Mobile) trinity, we will take a closer look at specific announcements that affect the Fintech arena, in particular, and what could have been done to further strengthen the Fintech ecosystem and bring in more players to boost innovation.
Key Announcements:
- Promoting BHIM through a Referral Bonus Scheme for individuals and a Cashback Scheme for merchants. This brings direct competition to existing payment players and ensures healthy competition while providing good alternatives to existing payment channels.
- Aadhar Pay, a merchant version of the Aadhar Enabled Payment System, will be launched specifically for those who do not have debit cards, mobile wallets or mobile phones. This will not only ensure greater financial inclusion but also open up the market for innovation, as additional Aadhar-based APIs may be available. Furthermore, for senior citizens, Aadhar based Smart Cards containing their health details will be introduced along with an LIC scheme for senior citizens to provide assured pension, with a guaranteed return of 8% per annum for a period of 10 years.
- Digital payment infrastructure and grievance handling mechanisms will be strengthened. This important step coupled with proposed changes in the Negotiable Instrument Act will bring trust and transparency with a long-term vision. An increasing number of vendors/outlets are now accepting digital payments and this will bring some much needed confidence to the system.
- Strengthening of the Financial Inclusion Fund and establishment of a Payments Regulatory Board will facilitate faster policy making with greater focus.
However, there were many core areas which were not addressed. India immediately needs a regulatory framework for Centralized KYC which will reduce operational delays and frauds in customer acquisition processes while improving overall accuracy and efficiency in the way financial services are consumed.
Recently, RBI had announced the launch of a committee to study the use of 'Blockchain' with the intention of bringing the rupee on blockchain. While this was a welcome move from the RBI, this budget could have given some attention to this area. Blockchain has applications in many areas and India can benefit immensely from its strategic implementation.
Further, use of Artificial Intelligence and Machine Learning along with Big Data can help capture tax evaders and ensure real-time compliance. These emerging technologies will shape the future of global economies.
Rapid technology transformation, automation and the rise of Fintech also calls for long-term skill management programs to ensure future employability of the population. While some steps have been taken in the right direction through the establishment of Skill India Mission, Pradhan Mantri Kaushal Kendras (PMKK) and International Skills Centres, there is still an urgent need to design and develop Fintech-oriented skill development programs in an Indian context with a global reach. It is estimated that nearly 30 to 50 percent of jobs will be automated within the next few years and people will need completely different skillsets to remain masters (rather than slaves) during this next big technical revolution. Singapore is a true role model in this space, having proactively taken steps to ensure that the right training is imparted to keep pace with the rapidly changing global landscape. The Singapore Fintech Consortium and the Fintech Center of Korea, have signed a memorandum of understanding (MoU) to work more closely in support of emerging technology in the financial sector.
In this context, it is worth noting that S P Jain School of Global Management has launched a 6-month full-time Professional Postgraduate Program in Fintech - the first-of-its-kind in Asia - that aims at filling this void. The program is designed by veterans from within the Finance, Banking and Technology sectors, and takes a holistic approach focusing on the complex intricacies of the banking and financial services (BFSI) sector, challenges faced by them, and the development of consumer-focused, habit forming, scalable but secure solutions with better UI/UX using emerging technologies such as Blockchain, Cryptocurrency, Robo-advisors, Artificial Intelligence/Machine Learning, Big Data, Internet of Thing and Internet on Things. Currently, there is huge demand in the market for Fintech professionals and this program provides great value proposition for today's youth to understand and join the Fintech revolution at an early stage. Many domestic and international companies like Barclays, DBS, ICICI Bank, Yes Bank, HDFC Bank, HP, Microsoft, Dell, Accenture, Intel, CISCO, Oracle, Lenovo, Fujitsu, Deloitte, Thomson Reuters and Capgemini are actively participating in the Fintech revolution, and are expected to attract large number of talent to this area.
In a nutshell, Budget 2017 placed a cornerstone for the future of Fintech. It has shown commitment in the right direction. However, the government's ability to make all the right moves at the right time is yet to be seen.
This piece is written by Vikram Pandya, Director of S P Jain's newly launched Professional Postgraduate program in Fintech . The program is the first-of-its-kind in Asia, and is designed and developed by experts and leaders drawn from the Finance, Banking and Technology sectors.
About S P Jain School of Global Management
S P Jain School of Global Management is a world-class business school with campuses in Dubai, Mumbai, Singapore and Sydney. Our education ethos is strongly influenced by our mission of crafting global business leaders for the 21st-century workplace. We pride ourselves on providing a learning experience that is modern, relevant and truly global.
Media Contact:
Sonali Hingorani
[email protected]
+91-22-61887600
SP Jain School of Global Management - Dubai, Mumbai, Singapore & Sydney
Share this article