Indian fintech executives emphasise the importance of building durable institutions, strengthening governance, and prioritising customer protection as the sector matures, amid tighter regulatory scrutiny and a move away from rapid growth.
At a panel in Mumbai on Wednesday, India’s fintech executives argued that the sector’s next stage will be judged less by speed and more by whether firms can build durable institutions, tighten governance and protect customers as digital finance moves deeper into everyday lending and payments. The discussion reflected a wider shift in the industry, as regulators have pushed firms to pair rapid innovation with stronger controls and clearer accountability.
Pallavi Shrivastava, founder of Progcap, said the industry’s first decade was defined by data-led innovation, expanding digital infrastructure and wider access to finance. She said the balance has since shifted towards governance, customer protection and institutional strength, adding that firms will increasingly be measured by the quality of the institutions they build rather than by growth alone. Her comments echoed the Reserve Bank of India’s broader emphasis on sustainable growth through stronger governance and customer-centric business models.
Shrivastava said Progcap’s own evolution showed how quickly regulatory change can reshape business models. After digital lending guidelines were introduced in 2022, the company had to accelerate a move from an asset-light platform to a balance-sheet lender by building its own NBFC. She said the change exposed the risks of relying too heavily on external lending partners and underscored the need for continuity in credit for small businesses that depend on regular funding.
Other founders said the pace of change in Indian fintech makes long-term assumptions risky. Ashok Hariharan, co-founder of IDfy, said firms cannot anchor strategy to one technology or one regulatory framework because the environment shifts too quickly. He pointed to the move from wallets to UPI as a reminder that an entire business model can lose relevance in a short time, while changes in digital identity and authentication have forced companies to diversify their technology stacks.
Upasana Taku, co-founder of MobiKwik, said fintech’s original promise was to expand access to financial services for customers beyond the reach of bank branches and traditional field networks. But she said that broader reach has also raised expectations around responsibility, especially as digital platforms become embedded in core financial transactions. Harshvardhan Lunia, founder of Lendingkart, added that headline growth figures can be misleading because many fintech firms began from tiny bases. He said the more important question is how much of the market has actually been served and how much opportunity remains, given the added burdens of underwriting, collections, compliance and governance.
The discussion comes after a series of RBI warnings and policy moves that have put governance at the centre of fintech debate. In recent years, RBI officials have urged firms to strengthen customer protection, data safeguards and self-regulation, while also tightening rules around digital lending and information technology risk controls. Against that backdrop, the message from Mumbai was clear: the industry’s second decade may be defined not by disruption, but by discipline.
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