Agile fintech platforms increase risk without proper oversight.

TLDR:

• RBI deputy governor Swaminathan J discussed the rise of ‘agile’ fintech platforms at the Global Money Week 2024 in Paris.
• He emphasized the need for robust regulatory frameworks, cybersecurity measures, and consumer awareness to mitigate fraud risks.

The article discusses how fintech platforms have become more agile with the rise in digitization of financial services, leading to increased risk of misuse and fraud. RBI deputy governor Swaminathan J highlighted the benefits of fintech platforms in offering customised financial products, but also pointed out the heightened risks of misuse and fraud. He stressed the importance of implementing robust regulatory frameworks, enhancing cybersecurity measures, and promoting consumer awareness to protect consumers from exploitation and fraud. Despite existing measures like multi-factor authentication and risk assessments, unauthorized transactions due to compromised credentials are still common. Swaminathan emphasized the importance of addressing these new risks to protect consumers, especially vulnerable groups like senior citizens, from financial frauds and cybercrime.