Move over IT, FM pitches fintech as ‘sunrise’ biz
Finance Minister Nirmala Sitharaman has urged the banking sector to understand the needs of emerging sectors like fintech and support them. She also underlined the fintech sector’s potential to provide technological support to banks and said they can also benefit with the help of the banking sector.
“From inputs given by officers from Tax administration, it emerged that Banks need to understand the special requirements of Sunrise sector. Example fintech, one such sector can provide technological help to banks as well as can benefit from banking sector,” Sitharaman said in a media interaction after her two-day Mumbai visit came to an end.
The fintech sector, also referred to as ‘sunrise sector’ by the Finance Minister, could also be targeted by banks, larger fintechs or even a fintech services conglomerate on the M&A front, as per a
KPMG report.
The report highlights banks are keen to join hands with fintechs, particularly neo-banks and wealth tech platforms.
The sector has raked in total investments worth around $2 billion during first half of 2021.
As per this report, four of the top 10 deals in Asia were into domestic companies during H1 of this year. While Pinelabs’ $285 mn funding was the third largest across Asia, Cred’s $215 mn funding in a series D round was the fourth largest across the continent.
Banks were directed to interact with Export
Promotion Agencies such as Federation of Indian Exporters Organisation as well as with bodies of industry and commerce so that the requirements of exporters could be addressed timely.
“With changed times, now industries have the option of raising funds even from outside the banking sector. Banks themselves are raising funds through various avenues. These new aspects need to be studied to target credit where it is needed,’’ she said.