Kris Gopalakrishnan, Co-founder of Infosys and Chairman of the Advisory Council for the Global FinTech Fest, emphasized the transformative power of fintech, fueled by trends like universal access to digital payments, AI-driven personalization, and responsible data management.
In a world rapidly embracing digital advancements, financial technology (fintech) is reshaping how we conduct transactions, save, and access vital services. As fintech adoption surges in emerging markets, it is fostering a more inclusive, efficient, and robust financial ecosystem. In an exclusive interview with Khaleej Times, Gopalakrishnan, who is also the Chairman of the Advisory Council for the Global FinTech Fest (GFF) 2024, shared his perspectives on pivotal trends, the importance of responsible AI, and the future trajectory of financial services.
During his address at GFF, held in Mumbai from August 28-30, 2024, Gopalakrishnan underscored the transformative potential of fintech, driven by trends such as universal access to digital payments, AI-driven personalization, and responsible data management. Here are some excerpts from the interview:
As a prominent figure in the tech industry, what are the most promising trends in fintech, particularly in emerging markets? Gopalakrishnan identified several key trends shaping the future of fintech. The first is the expansion of fintech’s reach to include more consumers, ensuring every citizen has access to digital payment systems like Unified Payments Interface (UPI). This involves creating services in vernacular languages, integrating voice-based commands, and making user interfaces as accessible as possible. This inclusivity is vital for a truly democratic financial ecosystem.
The second trend is the broadening of products offered on the same platform. Once a customer is onboarded, there’s an opportunity to provide them with a range of services — loans, insurance, and other financial products — all within the same ecosystem. This horizontal growth keeps the user engaged while meeting diverse needs in one space. Lastly, innovative services built on UPI, such as UPI Circle, are emerging. These services allow users to delegate access to their UPI wallet to others, enabling more collaborative or familial financial arrangements and enhancing transaction flexibility.
AI is increasingly pivotal in fintech. What considerations should the industry keep in mind when implementing AI responsibly? AI has remarkable applications in fintech. For instance, AI-driven real-time translation and voice response systems make it easier for users to interact with digital platforms in their preferred language, even without pressing a single button. Beyond that, AI can enhance fraud detection, cybersecurity, and automate routine tasks based on user behavior. However, it’s crucial to ensure that AI serves as a positive tool, rather than a negative influence.
With AI’s ability to detect patterns and make predictions, there’s a risk of misuse. For example, if a company understands a consumer’s behavior too well, it could potentially create targeted fake identities or products that exploit these patterns. Therefore, maintaining responsible AI usage is critical, especially in fintech. AI needs to identify patterns ethically and avoid manipulation or unauthorized profiling.
With AI innovation rapidly advancing, how do you suggest balancing it with data privacy, security, and cybersecurity in fintech? It’s a delicate balance. Customers share data to access better services, so there’s a clear need for responsible data handling. However, if data misuse occurs, it can seriously undermine trust. That’s why it’s crucial for companies to build and maintain customer trust through transparency and accountability.
When data is misused, either market dynamics will prompt consumers to switch to more trusted services, or regulators will step in. Privacy laws play an important role here — protecting users against exploitation, such as being denied health insurance based on patterns observed in their purchases. Often, regulation lags behind innovation, and it’s only after an innovation is widely adopted that unintended consequences become apparent. This is where responsible governance and clear privacy policies become paramount to maintaining public confidence.
How does fintech contribute to a more resilient financial ecosystem? India serves as an excellent example of fintech-driven resilience and inclusion. Over 800 million people have been brought into the formal financial ecosystem, enabling them to engage in digital commerce, make payments, and participate in the broader economy. This has made financial services more affordable, convenient, and accessible.
Digital technology enables people to accomplish tasks like booking appointments, paying bills, and shopping — all from the comfort of their homes. This accessibility not only streamlines lives but also strengthens the resilience of the financial ecosystem by engaging more people in the formal economy. With the rapid growth of new trends in banking, do you think the banking landscape is likely to see significant changes in the future? Banks are evolving rapidly, transforming the way they engage with customers. Banking today is no longer just about credits and deposits; it’s becoming an integral part of customers' lives, adapting to their needs at every stage.
For example, you could open a savings account for your child. As the bank knows their age, it could proactively offer an education loan when they turn 15 or 16. In essence, the bank grows alongside you, anticipating your needs. When you get a job, your salary is automatically credited, and the bank might suggest a car loan. This seamless integration makes banking feel like a lifelong financial partner. The mobile phone, for instance, has become the universal interface for all services — it’s your healthcare assistant, financial guide, educational support, and more. The goal now is to create a seamless, all-encompassing experience that meets a user’s needs across various facets of life.
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