A highly insightful and enriching workshop on "Fintech and Allied Products" was conducted for PGDM students by Mr. Vineet Ranjan, Head of Risk and Strategic Alliances at Kosh. The session provided a deep dive into the rapidly evolving fintech ecosystem, shedding light on innovative financial technologies, regulatory frameworks, risk assessment models, and emerging trends that are reshaping the financial landscape. It was an opportunity to gain firsthand knowledge of how technology is driving financial inclusion, enhancing consumer convenience, and revolutionizing digital transactions.
The session began with an overview of blockchain technology, explaining how data is securely stored in interconnected blocks, ensuring transparency and immutability. This technology serves as the backbone for smart contracts, decentralized finance (DeFi), and Central Bank Digital Currencies (CBDC). The discussion also covered the role of Core Banking Solutions (CBS), Cheque Truncation System (CTS), and digital payment frameworks, highlighting their contribution to financial efficiency.
A key focus of the session was understanding the fintech ecosystem’s stakeholders, including startups, financial institutions, consumers, regulatory bodies like NPCI, and fintech solution providers such as Pine Labs. With data being the essence of fintech, the session explored how innovations like UPI Autopay, e-mandates, and NACH (National Automated Clearing House) are streamlining digital transactions, enhancing convenience, and ensuring financial security. Regulatory compliance was another crucial topic, covering aspects such as civil score mandates, EMI structures, the Account Aggregator (AA) ecosystem, and the Sahamati initiative, which enables seamless and secure data sharing. The discussion extended to financial policies like the 28% tax on cryptocurrency, demonstrating how evolving regulations influence the industry’s growth.
One of the most engaging aspects of the workshop was the discussion on co-lending models, where fintech platforms collaborate with traditional lenders to reduce borrowing costs and enhance credit accessibility. A pivotal risk-sharing mechanism in digital lending, First Loss Default Guarantee (FLDG), was explained as a tool where fintech firms provide guarantees to lenders against borrower defaults. This model builds confidence among financial institutions by absorbing the first layer of losses, which can range from 10-20% for lower-risk portfolios to 80-90% for higher-risk lending models. Such mechanisms foster financial inclusivity, allowing individuals and small businesses to access credit with greater ease.
The session further delved into AI-driven credit assessments, KYC advancements through DigiLocker, and PESTEL analysis, examining the impact of regulatory policies, inflation, financial literacy, green finance, and technological advancements like AI and blockchain on the fintech sector. The importance of partnership models, evolving consumer behaviour, and future fintech trends was also discussed, emphasizing how open banking, AI integration, and sustainable finance will drive the next wave of financial innovation.
Concluding on a futuristic note, the workshop highlighted the FAME subsidy, which promotes EV adoption, and the growing role of decentralized finance (DeFi) in global trade and economic stability. The session left students with a deeper understanding of the fintech landscape, its challenges, and opportunities, equipping them with valuable insights for the future. It was truly a thought-provoking and intellectually stimulating experience, reinforcing the importance of staying updated in the ever-evolving world of fintech.