CEO and founders from India-based fintech platforms Walnut, Artoo and CreditVidya weighed in to comment on yesterday’s Founders of the Union Budget 2017 given by Finance Minister Arun Jaitley, noting its potential impact in increasing access of digital services and building a more inclusive economy:
“The Budget announcements are a good news for fintech companies. By promoting BHIM, UPI, Aadhar and other digital payments, Government has accelerated adoption of cashless payments. This will drive growth of the fintech sector as well,” said Amit Bhor, Walnut Co-Founder and CEO. “Another interesting announcement is the setup of a separate payments regulatory board based on the Watal committee report. We look forward to further opening up of the payments ecosystem led by this board.”
Walnut, a personal finance management app headquartered in Pune and founded in 2014, allows user to automatically track spends, bank and card balances without the need of bank passwords, find an #ATMwithCash nearby along with currency note information and to do bank to bank P2P transfers, Visa credit card bill payments and split expenses on the app.
In addition, Artoo, which specializes in digitalizing the SME lending space in India, has also embraced the potentially positive effects of the Union Budget, is Artoo Co-Founder and CEO Sameer Segal who commented,
“The Government has employed the right measures to ensure easy adoption of digital transactions across the country. The problem of adoption begins with merchants, and the decision to incentivize digital payments for them with cash-backs, will help in pushing the digital ecosystem forward. The focus on rural and semi-urban areas through post office, banking correspondents, Aadhar Pay for those without mobile phones, is another critical step to enabling and stabilizing the ecosystem, and will help improve access and trust in the nascent payments infrastructure in the country.”
“Additionally, the reduction in corporate tax will help mature and bootstrapped startups in scaling their business on a solid foundation. That said, MSMEs have witnessed relative neglect in the 2017 Union Budget. Post demonetization, the necessary boost that the MSME segment required in terms of employment and kick-starting supply chains has not been addressed.”
Lastly, CreditVidya, a fintech startup headquartered in Mumbai which was dounded in 2013, uses non-traditional data sources to provide credit scores and customer profiling services to millions of Indian customers, helping lenders accurately assess risk of new-to-credit and thin file customers. CreditVidya Co-Founder and Director Rajiv Raj added,
“The Government’s decision to enhance the digital payment infrastructure by providing incentives is a powerful move towards creating a Digital India. This will help deepen digital footprints of Indian consumers, which will in turn enable superior credit underwriting and profiling for millions of individuals who do not have access to credit at a reasonable rate, leading to greater financial inclusion. We welcome the announcement of tax exemption for startups. This will benefit them significantly, and make the initial entrepreneurial journey much easier.”