Benefits of DigiLocker Services to the Fintech Sector
By Mr. Amar Deo Singh, Head Advisory, Angel One Ltd
India’s fintech space is divided into five segments – payments that include QR payment, bill payment, and other aggregator services; lending includes buy now, pay later, and lending platforms, thirdly there are digital banking platforms, insurance platforms, and wealth management platforms enabling investments and AI-based advisory services. To gain access to any of these financial services, people need to submit identity proofs, and it is a must for these platforms to verify the identity details submitted during the onboarding process. Over the years, Fintech platforms have simplified the KYC process to enhance customer experience. However, Finance Minister Nirmala Sitharaman’s announcement during the Union Budget 2023-24 to provide Fintech platforms access to documents in DigiLocker to authenticate users is a game-changer.
Aligned with its Digital India mission, the Indian government has facilitated the growth of Fintech in the country by providing access to other digital public infrastructure like Aadhaar, PM Jan Dhan Yojana, Video KYC, UPI, etc. As a result, the Indian fintech industry is predicted to grow to $1.3 trillion by 2025.
