RBI to set up fintech repository, why all managers should be finance-savvy, and more

The fintech ecosystem in India is booming — and regulators are constantly working to redefine the framework needed to support innovations in the industry.

In a recent move, the Reserve Bank of India said it would set up a fintech repository to capture essential information about firms operating in this space, encompassing their activities, products, technology stack, and financial information.

Making the announcement, RBI Governor Shaktikanta Das said that banks and NBFCs in India are increasingly partnering with fintechs and this repository is for a better understanding of developments in the industry.

Experts have welcomed this move, calling it a game changer. “This isn't just about collecting data; it's about shaping the future of financial services in India, and how they will be delivered and consumed,” says Pranjal Parihar , VP-Commercial Banking, HSBC India.

Read Pranjal Parihar's full post here.

Fintech firms would be encouraged to provide relevant information voluntarily to the repository, the central bank said. It will also establish a cloud facility as part of this.

Does this augur well for fintechs operating in India? “This increase in transparency is expected to attract more customers to such platforms, thereby increasing the business for Fintechs and access to funding for individuals - a win-win for all,” says Sanchit Jain , a finance PhD scholar at IIM-Bangalore.

Read Sanchit Jain's full post here.

The RBI said this information will also help in designing appropriate policy approaches, controlling financial risks, curtailing cyber frauds, and bringing predictability in the industry. Parihar adds that we can expect a more structured and transparent fintech sector. “The data collected could pave the way for refined regulations, especially in online lending.”

Some reports, however, suggest that the submission of data to the repository, though voluntary, may lead to additional compliance processes for fintechs to adhere to.

The decision to set up a fintech repository is akin to nurturing growth together in a relationship, Yadnesh Chavan , Head of Investments at Reliance Nippon Life Insurance writes on LinkedIn. “It's a commitment to support and enhance each other’s strengths, fostering collective progress.”

Why every manager should build finance skills

As new technologies and innovative business practices take over, experts say now is the right time to rethink, redefine, transform finance. This includes everything from the purpose of finance and the services it provides to operating models, integration with the business, as well as the necessary tools and talent, says a report by EY.

A crucial part of this is making finance acumen a constant across the length and breadth of an organisation. “Since an organisation's success hinges on its financial standing, acquiring financial leadership skills in 2024 should be one of the key goals for every non-financial manager,” says ADITYA K MEHTA , CFO at Orion Group.

Read Aditya K Mehta's full post here.

A Forbes report lists out five areas in financial management that every manager should be well versed with — knowledge of basic financial terminologies, the art of cost reduction, financial planning, financial software, and effective collaboration with the finance department.

“Non-finance managers who understand the numbers are equipped to make smarter decisions, drive better results, and ultimately, climb the corporate ladder faster,” says Narendra Tiwari , Senior Manager at Deloitte.

Read Narendra Tiwari's full post here.

He also adds reading and interpreting key financial statements like the balance sheet, income statement, and cash flow statements will be a key skill to master. “These documents paint a picture of the company's financial health, profitability, and liquidity.”

What finance skills must non-finance managers develop and why? Share your thoughts in the comments below.