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SHGs, Co-Operatives And Urban Societies, Potential Areas Of Fintech Growth: Experts

Also, raise concerns about privacy and cybersecurity. Suggest Blockchain as a solution.

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"We have to now look beyond transfers", said Nand Kumarum, CEO, Madhya Pradesh Agency for Promotion of IT, Govt of Madhya Pradesh at a public forum. He further added that there are three sectors where fintech can help.

The first sector that he talked about was the cooperative sector. He said, “It is in co-operative sector where people collect and we distribute. We must find out, how do you do small accounting software? How can gain the trust of the people so that they share their information without worrying about authorities?”

According to him, Self-Help Groups is the second sector. And the third one is value addition, he said, “There are so many informal transactions taking place in the market between families and elders and families. That is one space if we are getting at, there will be a lot of value addition.”

Urban societies also important

Adding to this, Sanjay Kr Das, Joint Secretary IT and Electronics Deptt, Govt of West Bengal, said that SHGs need a lot of transactions and paperwork to grow from the creation stage to where they are funded by the banks.

He also expresses that the societies in the urban areas need to be looked at too. “There are a lot of societies coming in urban areas. There are hundreds and thousands and lakhs of societies across the country and they are creating value too. Solutions can be created for them and there is a great opportunity for fintech intervention”, Das said.

Das also talked about the West Bengal government’s new Electronic dan or e-dan initiative, framed on blockchain technology. On the platform, Das said, Societies can make their own page like Facebook and use a unified payment method to do transactions.

Trust an essential part

According to Kumar Vineet, Special Secretary (IT&E), Govt of Uttar Pradesh, “Technological part of fintech has to create an environment of trust in the whole ecosystem…There should be trust on the entire system that the money actually goes to the place and is secure.” He also raised concerns about data privacy and cybersecurity.

He also added that the best way to build that trust is through the use of blockchain technology.

Tags assigned to this article:
FinTech Blockchain Self Help Group