Chief Economic Adviser (CEA) V Anantha Nageswaran on Thursday asked the financial technology (fintech) industry to avoid excessive lending and short-term focus to ensure that technology opportunities and product innovations live up to their promise. Nageswaran said like any new instrument or tool, fintech has immense potential but also challenges.
Be aware of the challenges and risks
According to the news, he said at the Ninth Global Economic Summit organized by the World Trade Center here that market participants, industry participants should be aware of the challenges and threats that the powerful combination of finance and technology can pose to social stability, low and middle income people as well as micro and small enterprises. Nageshwaran urged the industry to ensure that there is no harm to the savings, income and wealth of consumers in a country like India where financial literacy is low.
Avoid short-term focus
He said that fintech providers need to avoid excessive lending and short-term focus to ensure success. He said that everyone understands financial literacy and its importance, but hardly anyone understands its practical implications, so the onus on the industry is double.
Understanding the Chief Economic Advisor
The Chief Economic Adviser (CEA) of the Government of India advises the government on economic matters. He is also responsible for the preparation of the Economic Survey of India which is presented to Parliament before the presentation of the Union Budget of India. The CEA holds the rank of a Secretary to the Government of India. Until 2009, the post of Chief Economic Adviser to the Government of India was filled by the Union Public Service Commission (UPSC) and until the 1970s, almost all Chief Economic Advisers were members of the Indian Economic Service.
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