Web 3: Solution To Financial Inclusion?
The pandemic has accelerated the transformation of finance through fintech, digitising money, and financial services for more equitable and effective financial services and fostering economic growth.
Speaking at BW Businessworld's Web 3 Awards and Summit in 2023, Sreekrishnan Venkateswaran, CTO of Kyndryl India, emphasises the challenge of limited access to credit in India, urging the acceleration of lending action and removal of friction in the lending process. He envisions creating something similar to UPI for lending, especially in complex lending instruments like agricultural and diary lending.
Industry experts strive to provide seamless customer experiences while incorporating Web 3 solutions into operations. Deepak Sharma, President, and CDO of Kotak Mahindra Bank highlights the fundamental building blocks for financial inclusion, such as identity, payment, and data consent architectures. These foundational blocks enable various financial products like microlending, insurance, crop and agri access, and open networks to facilitate last-mile delivery.
Dilip Chenoy from Bharat Web 3 Association highlights the need for more players to enable inclusive access to credit, especially for the large number of smartphone users not on UPI. He also points out that banks and financial institutions have limited access to funds, while other sectors possess an abundance of funds that can be utilised through a decentralised system.
In conclusion, Web 3 is seen as a potential solution for financial inclusion, facilitating access to credit, insurance, and market information through decentralised networks, ultimately fostering economic growth and inclusive financial services.
