Hello everyone, 

Welcome to the 124th edition of The Pattern, a weekly newsletter looking into the latest in finance, economy and technology. Let’s dive in.  

Indian fintech has had an action-packed week thanks to the Global Fintech Fest. This year’s edition saw several noteworthy moments – from the unveiling of (yet) another revolutionary Digital Public Infrastructure (DPI) piece to the many insights on how the industry is shaping up in the years to come. As one of the many GFF delegates, I can safely say that fintech is sure see some exciting years ahead. Let’s take a closer look: 

Lending to have its UPI moment?  

RBI Governor Shaktikanta Das revealed that the central bank will soon release a brand-new DPI: the Unified Lending Interface (ULI) . The platform aims to make lending more frictionless by facilitating a seamless flow of consent-driven data. It will bring together data for credit appraisal – which is currently fragmented across various entities – on to one platform. Meaning that data across AAs, credit bureaus, and even land records from across states will be on a unified platform, enabling players in the lending ecosystem to access and build complex lending modules more effortlessly via standardized API.  

The access to state-wide land records is noteworthy. It means that land data from across states will enable digitisation of mortgaged lending – something that is currently a process that’s ridden with cumbersome paperwork. With ULI in the picture, the credit industry inches closer to a 100% digital-lending model – one where secured loans may be disbursed in hours. And that is a fintech dream come true!  

Indian fintech’s global spotlight  

India’s export of the UPI model has been fascinating to watch. In April, there were reports of the government planning to expand its scope of digital stack exports to the global south nations . But the opportunity to export our DPIs, it seems, has a larger market! According to the Secretary of External Affairs, Mr. Dammu Ravi, India is looking to collaborate with the World Bank and the International Monetary Fund to help set standards for digital payments, blockchain technologies, and cyber securities. 

The role that India will play seems larger too. We’re not merely going to be exporters of technical know-how – we might just be the ones defining the rules. "For a long time, India has always been a rule-taker. We just complied with the rules made by the global community, largely driven by the Western nations. But in the fin-tech solutions, fin-tech technologies, and the DPI world, India has an eminent role to play in rulemaking because most of the technologies are made in India," Mr. Ravi said.  

This takes me back to my experience at GFF: as I looked across the halls, I couldn’t help but be fascinated by the diverse crowd of international delegates. Mr. Ravi’s words indeed hold true – the next few years will see India confidently lead the world into digital-financial revolution! 

Fintech’s direction in the next decade  

A BCG and GFF report on the next decade of finance states that India’s fintech is in a promising place. However, there’s much preparation needed. The report states, “We are at an inflection point in the global financial journey. To navigate these transformative waters, we need to construct six bridges: 

1. Bridge Future Ready Technology,  

2. Bridge between Incumbents and Fintechs, 

3. Bridge to Internationalization, 

4. Bridge to Capital Access, 

5. Bridge to Regulation, Compliance, and Risk Management, 

6. Bridge to Brighter and Greener Future” 

Conclusion  

All in all, the fintech space in India seems to be doing great – we've built a robust system that has seen perfect synergy between policy makers, fintech, and regulated entities, innovation has gained momentum like never before, and the only way we seem to be moving is upwards! Things seem to be looking up for Indian Fintech, and I can’t wait to see what the future will bring.  

That’s all for this week. As always, leaving some reading recommendations below. 

Need to balance fintech innovation with prudence: RBI  

UPI accounts for over 80% of retail digital payments  

RBI pushes fintech to cross-border, says will provide infra  

RBI Governor unveils Bharat BillPay for Business, UPI Circle  

Thank you for reading. If you liked this edition, forward it to your friends, peers, and colleagues. You can also connect with me on Twitter here and follow FinBox on LinkedIn to always get all updates.

Cheers,

Mayank

All opinions expressed are my own and do not necessarily reflect the views of FinBox or its promoters.