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What’s in store for fintech and digital lending in 2024?

1 min read
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TLDR:

  • India’s fintech and digital lending industry, including the gold loan sector, is anticipating key measures in the 2024 Union Budget.
  • The industry expects a clear regulatory framework for legal recognition, licensing, and supervision, as well as a favorable tax framework with incentives tailored for startups.
  • The digital lending sector is also looking for improved digital infrastructure, innovation support, and collaboration in emerging technologies like AI and blockchain.

The fintech and digital lending industry in India is eagerly awaiting the 2024 Union Budget, hoping for key measures that will drive further growth and innovation in the sector. This industry, which includes the gold loan sector, has been a major driver of financial inclusion and economic development, particularly in rural and underserved areas of the country.

One of the main expectations from the Budget is the establishment of a clear regulatory framework for the industry. This framework would provide legal recognition, licensing, and supervision, ensuring a level playing field with traditional lenders and building trust among customers and investors. A favorable tax framework with incentives tailored for startups is also anticipated, aimed at lowering capital costs and enhancing profitability.

In addition to regulatory and tax measures, the digital lending industry is looking for improved digital infrastructure. This includes seamless integration with existing systems, which would enhance efficiency, convenience, and security for borrowers and lenders. The sector also hopes for a supportive innovation ecosystem, which would foster research, collaboration, and incubation of emerging technologies such as artificial intelligence, blockchain, and cloud computing. These technologies can help address evolving customer needs and provide more customized credit solutions.

The gold loan sector, in particular, has seen substantial growth in recent years and faces specific challenges such as regulatory uncertainty, data privacy, cyber fraud, and customer awareness. The industry expects significant measures in the 2024 Budget to address these challenges and support its growth trajectory.

In conclusion, the fintech and digital lending industry, including the gold loan sector, plays a crucial role in the Indian economy, particularly in the wake of disruptions caused by the COVID-19 pandemic and economic crises. The industry hopes that the 2024 Union Budget will recognize and reward its contributions, address its challenges and aspirations, and pave the way for a more vibrant and resilient digital lending ecosystem in the country.

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