Building an Inclusive Financial Ecosystem

In a rapidly advancing digital world, financial technology (fintech) is redefining how we transact, save, and access essential services. As FinTech adoption accelerates in emerging markets, it is helping to build a more inclusive, efficient, and resilient financial ecosystem.

In an exclusive interview with Khaleej Times, Kris Gopalakrishnan, Co-founder of Infosys and Chairman of the Advisory Council for the Global FinTech Fest (GFF) 2024, shared his insights on key trends, the role of responsible AI, and the future of financial services.

Speaking at GFF, held in Mumbai from August 28-30, 2024, Gopalakrishnan highlighted the transformative potential of fintech, driven by trends such as universal access to digital payments, AI-driven personalisation, and responsible data management.

Excerpts from the interview:

As a key player in the tech industry, what are some of the most promising trends you see in fintech, especially in emerging markets?

There are a few major trends shaping the future of fintech. The first is deepening fintech’s reach to include more consumers, giving every citizen access to digital payment systems like Unified Payments Interface (UPI). The aim here is to ensure universal access, which might mean creating services in vernacular languages, integrating voice-based commands, and making user interfaces as accessible as possible. This inclusivity is crucial for a truly democratic financial ecosystem.

The second trend is expanding the range of products offered on the same platform. Once a customer is onboarded, there’s an opportunity to provide them with a suite 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, we are seeing innovative services being built on UPI, such as UPI Circle, which allows users to delegate access to their UPI wallet to others. This opens up possibilities for more collaborative or familial financial arrangements, enhancing flexibility in transactions. There’s also significant opportunity in international expansion — integrating UPI with systems in other countries, such as the UAE’s payment system, which has already embraced UPI.

AI is playing an increasingly important role in fintech. What should the industry consider when implementing AI responsibly?

AI has incredible applications in fintech. For example, 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 the need to press a single button. Beyond that, AI can improve fraud detection, cybersecurity, and automate routine tasks based on user behaviour. But it is essential 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 is a risk of misuse. For instance, 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 is 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.

— kushmita@khaleejtimes.com