Fintech firms can play bigger role in taking financial services to underserved communities

Mumbai, Sep 11: Fintech companies can become important partners in India's next phase of financial inclusion by using technology to bring banking, credit and other financial services closer to people who remain underserved, Reserve Bank of India Governor Sanjay Malhotra said.

Speaking at the Global Fintech Fest 2026, Malhotra highlighted the growing role of technology in making financial services more accessible and affordable, particularly for people and businesses that have traditionally faced difficulties in accessing formal finance.

Fintech platforms can help connect informal-sector workers, small businesses, farmers, women entrepreneurs and customers in smaller towns with digital payments, savings, insurance and credit services. The use of technology can also make small-ticket financial products more viable for these segments.

For millions of small businesses and individuals, easier access to formal financial services can mean better opportunities to manage cash flows, obtain credit, build financial histories and invest in future growth.

However, the rapid expansion of digital finance also brings greater responsibility. The RBI Governor stressed that customer data must be handled carefully and used only for clearly defined purposes with appropriate consent.

Trust is becoming particularly important as financial services increasingly move online and artificial intelligence becomes more deeply integrated into lending, payments and financial decision-making. Strong data protection, cybersecurity and transparent practices will therefore be essential for sustainable growth in the sector.

The RBI has also encouraged fintech companies to focus on responsible innovation rather than expanding rapidly by taking advantage of regulatory gaps. Early engagement with the regulator and the use of regulatory sandbox mechanisms can help businesses develop new products while managing potential risks.

A stronger partnership between banks, fintech companies, regulators and digital public infrastructure could further expand the reach of formal finance. Such cooperation can help reduce barriers for underserved customers while supporting innovation across payments, lending and other financial services.

For the wider economy, deeper financial inclusion can support entrepreneurship, strengthen small businesses and give more households access to formal financial tools. It can also help bring more economic activity into the organised financial system.

India's fintech ecosystem has already demonstrated how technology can change the way people access and use financial services. The next stage will be about making that growth more inclusive, secure and trustworthy.

With responsible innovation and stronger consumer protection, fintech companies can play a larger role in helping more individuals and businesses participate in India's growing digital economy.