Shaping the next decade of finance - technology, trust and innovation

Greetings from the Global Fintech Fest. This esteemed gathering, an evolution from a simple industry conference, now serves as a vital assembly of policymakers, regulators, innovators, financial entities, entrepreneurs, and scholars. I extend my sincere appreciation to the organizers, the Payments Council of India, the National Payments Corporation of India, and the Fintech Convergence Council, for their unwavering dedication in transforming this event into the world's premier conference of its kind.

I'm particularly grateful to the Reserve Bank of India for their steadfast support, which has enabled the festival to flourish and achieve its current prominence. I am honored to present my reflections on this year's theme: "Potential to Impact: Trusted, Connected, Global Systems for Inclusive Finance." The concept of potential only becomes impactful when its benefits reach everyone, not just those already well-served.

Therefore, trust must be at the core of innovation. As we commemorate a decade of financial advancement, it's noteworthy that many aspects once deemed potential are now tangible realities. Today, approximately 57 crore PMJDY accounts are active, with over 85 crore microinsurance policies issued through Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana.

Additionally, 9 crore individuals are under the Atal Pension scheme, and around 60 crore beneficiaries are covered by PM Jan Arogya Yojana. Digitally, 280 billion transactions occurred in FY2025-26, and a staggering 24 billion UPI transactions take place monthly. These figures underscore the transformative power of fintech, not just in scale, but in becoming an integral part of daily life.

From street vendors accepting payments via QR codes to the widespread adoption of digital systems, this widespread embrace of financial technology is a testament to the profound impact of public-private partnerships. They have nurtured entrepreneurship and innovation while fostering trust and confidence. While we celebrate these accomplishments, we must acknowledge that our journey is far from complete.

There remains significant room for growth. The ultimate objective of fintech should be to make all financial services universally accessible. Financial inclusion, fostering financial well-being, is the paramount purpose for which fintech should serve. Reaching the most remote areas through savings products for the informal sector, micro-insurance, small pensions, small-ticket credit, credit for women entrepreneurs, small and marginal farmers in rural and tier-3 and tier-4 towns, is a challenge that traditional banking and financial institutions struggle to address efficiently.

Advanced underwriting and credit assessment tools, when applied to this endeavor, have made it economically viable—a feat unimaginable a generation ago. However, many industry efforts are concentrated on well-established customers who are digitally literate and already recognized by credit bureaus. The real work lies in reaching those still outside the system, where "potential to impact" is least realized yet most critical.

As I have previously addressed in my FIBAC speech, there are four additional areas, besides financial inclusion, where AI can make a difference: consumer service, meeting unmet credit and financial needs, enhancing operational efficiency of banks and financial intermediaries, and reducing fraud. These advanced technologies, while powerful, are merely tools towards a greater end.

Therefore, I urge all stakeholders in the fintech industry to focus on the broader objectives these technologies must serve, realizing their "potential to impact." Finally, I turn to the theme of trust, a crucial element of our conference. Trust is not merely a marketing slogan but an ongoing commitment, forged transaction by transaction.

It requires years to build but can be shattered in a single moment. Throughout history, finance has performed its essential functions—saving, borrowing, investing, transferring value, and managing risk—using evolving instruments and institutions. Trust has consistently been the bedrock of every financial system. As Kautilya noted in his Arthashastra, a robust and well-governed financial system is indispensable for a nation's prosperity and stability.

His broader insight was that economic progress is deeply intertwined with the strength of our financial framework.