The MoU was signed during the official visit of Singapore President Tharman Shanmugaratnam to Odisha, coinciding with the celebration of the 60th anniversary of diplomatic relations between India and Singapore. The initiative is poised to accelerate the development of Odisha’s digital economy, aligning with India’s vision of “Insurance for All” by 2047.

Chief Minister of Odisha, Mohan Charan Majhi, expressed the state’s ambition to harness GFTN’s global expertise to drive tailored FinTech solutions. He emphasized that Odisha has already made strides in becoming a leader in India’s IT sector and now aims to expand its services sector through the promotion of innovation, startup ecosystems, and collaborations with academia and industry. These efforts are geared toward making Odisha a hub for FinTech advancements.

“Through this partnership with GFTN, Odisha will not only promote financial inclusion but will also push the boundaries of technological innovation in InsureTech,” said CM Majhi. “The creation of incubation centres and global collaborations will enable us to foster a thriving FinTech ecosystem.”

Sopnendu Mohanty, CEO Designate of GFTN, highlighted the alignment of the partnership with India’s Viksit Bharat 2047 vision, which focuses on financial inclusion and sustainable economic empowerment. By leveraging Odisha’s entrepreneurial potential and talent, the hub will become a catalyst for the state’s digital transformation.

The MoU further supports India’s broader goal of ensuring that every citizen is covered by life, health, and property insurance by 2047. Odisha, with its evolving regulatory framework, is taking proactive steps to mainstream technology and innovation to achieve financial inclusivity.

In a statement, Vishal Dev, Principal Secretary of Electronics & IT, Odisha, pointed out the state’s immense potential and its commitment to becoming one of India’s leading FinTech hubs. The government’s generous policy incentives, coupled with the state’s skilled workforce, make Odisha an ideal destination for FinTech innovation.

“Financial inclusivity is at the heart of Odisha’s developmental agenda,” said Saswata Mishra, Principal Secretary of Finance, Odisha. “A strong FinTech ecosystem will be instrumental in achieving this vision.”

The signing of the MoU was part of a broader series of engagements between Odisha and Singapore. In the presence of Singapore’s President, Odisha exchanged a total of eight MoUs with various Singaporean entities to strengthen collaboration in diverse sectors, including skill development, renewable energy, semiconductors, and data centers.

Earlier in the day, President Tharman visited the World Skill Center in Bhubaneswar, where he was welcomed by CM Majhi and received a detailed briefing on Odisha’s initiatives and opportunities for collaboration with Singapore. The President also toured the Vertical Transportation Lab and Travelator Lab, interacting with students and instructors, underscoring the growing partnership between the two regions.

With these agreements in place, Odisha is well on its way to becoming a central hub for FinTech innovation, contributing to India’s broader financial inclusion goals while fostering sustainable economic growth.

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Since its launch in 2016, UPI has transformed the digital payments landscape in India, connecting over 300 million individuals and 50 million merchants to a seamless and efficient transaction platform. By October 2023, UPI was responsible for 75% of all retail digital payments in the country. The paper notes that the affordability and widespread adoption of digital technology have played a crucial role in UPI’s success, ensuring its reach from urban centers to rural areas.

One of the key insights from the research is the correlation between increased UPI adoption and the rise in access to formal credit. In regions with high UPI usage, loans to new-to-credit borrowers grew by 4%, while subprime borrowers saw an 8% increase in loan access. The study highlights that UPI’s role in facilitating digital financial histories has empowered lenders to make more informed decisions, thus expanding credit to underserved populations.

The paper also reveals that between 2015 and 2019, fintech loans to subprime borrowers increased to match the growth seen in traditional banking. In areas where UPI adoption was high, fintechs thrived, with the credit market expanding without a corresponding rise in default rates. This suggests that UPI-enabled transaction data allowed lenders to manage risks effectively while broadening their customer base.

A key takeaway from the paper is that the benefits of UPI’s success are not confined to India. As the system continues to evolve, the Indian government has emphasized the importance of making UPI a global tool for financial inclusion. The report advocates for other nations to explore UPI’s open banking policies and public digital infrastructure to reduce financial exclusion, drive innovation, and promote equitable economic development.

In conclusion, the success of UPI offers a replicable model for countries worldwide looking to advance financial inclusion and improve access to credit for underserved populations. The paper underscores how India’s digital payments ecosystem has not only revolutionized financial services within the country but also holds the potential to shape global financial landscapes in the future.

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