The Future of Finance Initiative seeks to identify and address new challenges for policy and regulation in India given the waves of digital innovation currently sweeping financial services. Our work in this initiative studies the impacts of digitisation and technological innovation in Indian finance, leading from the consumer perspective on these issues.
Through our research, we seek to ensure that regulation and policy develop in ways that support responsible innovation by existing and new institutions, such that they can deliver comprehensive access to financial services (payments, credit, insurance and investments), while not creating new systemic or customer protection risks in the process. Given the rapidly-changing technology & financial services landscape in India, big questions lie ahead for our efforts to build a vision of inclusive and suitable access to finance in the country.
- Will Indians change the way they access and use finance?
- How are firms and regulatory institutions changing the way the evolve in a data-driven world, including in their interactions with individual users?
- How should policy and regulation respond?
- How do we protect the most vulnerable customers in face of rapid change and innovation?
- What are the risks for systemic stability, in this context?
Our research agenda is focussed on the three core themes below, and the opportunities and risks they can create that impact the lives of lower-income individuals. Our April 2019 Conference on Regulating Data-Driven Finance unpacked these themes in more depth. Resources and primers detailing this research are available at the conference website here.
Disintermediation of Financial Services
Proliferation of entities disintermediating financial services and interacting with users of retail finance
Public Infrastructure for Digital Finance
Large scale investment in public infrastructure i.e. Aadhaar and India Stack, to enable digital financial services in the country
Consumer Data and Advanced Analytics
Increased use of consumer’s personal data and advanced analytics in the course of provision of financial services