Tracking through serial number, QR codes and automation to ascertain which retailer is financing your product and having the transparency of it all is enabled by digitsation,” said Nikhil Sohoni, Group CFO, Blue Star
Technological innovations which have made it possible to provide virtual models of huge infrastructure projects has been a significant tool in redefining the real estate industry. Today, the Indian real estate market stands at USD 250 billion and is estimated to grow to USD one trillion by 2030. Leveraging technology has drastically transformed the industry, experts emphasised during a panel discussion at the BW CFO Future of Finance Summit 2023 in Mumbai.
Kunal Sanghavi, Chief Financial Officer, HDFC Securities, highlighted certain insights regarding the brokerage and financial service industry in India. “As a country we had close to 20 million demat accounts until five years back,” he said, “only in the last five years this number has increased five times, this transformation is due to the overall shift in digitisation which has reduced the cumbersome process of opening an account.”
Account opening used to require multiple signatures, take months to process, combined with logistical issues. All these processes have now been digitised. The advent of high-speed mobile internet, coupled with regulatory enablement has fostered this development, subsequently enabling retail participation, leading to companies raising funds.
“Tracking through serial number, QR codes and automation to ascertain which retailer is financing your product, the nature of financing and having the transparency of it all is enabled by the digitisation process,” said Nikhil Sohoni, Group CFO, Blue Star.
Delving more into the discourse, Jitesh Kakarea, CFO & Supply Chain Director, Moet Hennessy, also spoke about fintech companies leading the way for digital transformation, “Fintech has democratised learning, stock broking firms are onboarding consumers through a learning program. Their asset light models have generated a far better reach,” Kakarea said.
Blockchain adoption in fintech has not taken off, features like e-KYC have kept blockchain under-utilised. However, cloud technology has enabled scale and flexibility for business models, data security, etc.
“Financial resilience and stability have been the priority of Reserve Bank of India. Sufficient capital and liquidity ensure financial resilience, whereas delivering critical services during any disruption is the competency of operational resilience,” said Gaurav Malik, CFO, Experion Developers.
The digital lending and fintech space provide opportunities to the country, but also poses regulatory challenges. Regulators should ensure that transactions are done in a fair and transparent manner, with the sole aim of consumer protection.
The discussion concluded with the prediction of future tech disruptions such as central bank digital currency (CBDC), integrated digital approach, blockchain in real estate transaction, among others.