Richa Mukherjee, with 25 years in payments and technology, specializes in public policy. She has held leadership roles at AWS, HSBC, Barclays, TCS, and SWIFT India. Currently at PayU India, she focuses on policy outreach, sustainability, CSR, and fintech advocacy with ASSOCHAM and IAMAI.
In a conversation with Women Entrepreneurs Review Magazine, Richa shares insights on the financial services industry's evolving landscape, focusing on the interplay between regulatory frameworks, inclusive tech policies, and the integration of social impact initiatives, particularly for women leaders during crises.
Given the current landscape of the financial services industry, how do you see the interplay between regulatory frameworks and the push for more inclusive tech policies affecting the industry's evolution?
India is seeing a massive acceleration in its digital ecosystem, and we are witnessing proactive regulatory interventions with the aim of bringing the under-served and unbanked population into the digital fold. Both the Government of India and our key regulators such as the RBI and MoF have been focused on developing customer-centric and inclusive tech policies in India. Some of these policy interventions include the Pradhan Mantri Jan Dhan Yojana (PMJDY), the Aadhaar Enabled Payments System (AEPS), Pradhan Mantri Mudra Yojana (PMMY) and the National Financial Literacy Mission (NFLM). The policy interventions mentioned above are focused on enhancing financial inclusion and ensuring that fintech services reach all sections of society. Further, the regulators are also focused on enhancing digital infrastructure (DPI), and digital literacy, and expanding access to digital financial services through different public initiatives.
Inclusive tech policies have had a positive impact on the prospects of fintech businesses in India. Some of the ways in which inclusive tech policies have helped fintech businesses evolve are:
- Increased Market Access: Inclusive tech policies have been helpful for the growth of fintech organizations. It has enhanced consumers’ access to the market, thereby promoting financial inclusion and expanding the existing customer base.
- Digital Public Infrastructure: The regulators have been focused on enhancing digital infrastructure in India. Some of the aspects that are being focused on are an expansion of internet access, and services, and an improvement in mobile connectivity. These initiatives benefit FinTech by increasing their user base and making it easier for them to access digital financial services.
- Innovation: Inclusive fintech policies include frameworks that are focused on fostering innovation. For instance, regulatory sandboxes allow startups to evaluate new products in a controlled environment, thus reducing barriers to market entry.
- Access to Government Platforms: Government initiatives often provide financial support or incentives for fintech businesses. Programs like Startup India offer funding opportunities, tax benefits, and other resources to support the growth of fintech startups. Additionally, they encourage partnerships between fintech companies and government agencies or traditional financial institutions which helps in sharing resources, data, and infrastructure, fostering innovation and integration.
- Consumer Trust: Government policies focused on financial literacy and protection, help build consumer confidence in fintech products and services. Consumers with exposure to such sensitization are more likely to engage with fintech solutions being offered by entities.
How can financial institutions integrate social impact initiatives into their core strategies to drive both business success and positive societal change, particularly in underrepresented communities?
India is a country on a fast growth path with innovation and appropriate regulatory support. With the right intent and robust planning; financial institutions can effectively integrate social impact initiatives into their annual business strategies.
At PayU, we employ two key approaches to integrate to maximize social impact. First, through our CSR efforts, we design and execute activities aimed at engaging and supporting unbanked/under-represented communities. Second, we proactively map and align with government initiatives, programs, and campaigns that focus on catering to the needs of underrepresented communities in the domain of digital finance. Some of our initiatives in this context are:
- Digital and financial literacy through mobile vans: PayU is raising awareness about digital and financial literacy among rural and semi-urban citizens through three mobile vans. Through this initiative, about 50,000 candidates are trained per year, per mobile van. We are planning to expand the initiative to aspirational districts and northeastern states.
- RBI village adoption program: Under this program, PayU has adopted five villages in Uttar Pradesh where in-person digital awareness is being provided. As part of the program, 5000 villagers/beneficiaries are being sensitized each year through multiple IEC activities (banners, signages) in the adopted villages.
- Skilling and mentorship for women entrepreneurs: PayU has partnered with WEP, and NITI Aayog to provide online training to women entrepreneurs associated with WEP to further help them build on their knowledge and skills. The key activities will include sessions and workshops on financial literacy, marketing assistance, guidance webinars, etc.
- Sessions on financial literacy: PayU regularly partners with entities such as Teach for India, U&I, and Angel Express to contribute to society by imparting lessons on financial literacy to underprivileged teenagers and young adults. The sessions broadly cover the key aspects of money management and building a secure future, helping drive financial literacy and independence among youth.
- Pay continues to participate in multiple RBI initiatives such as RBI Kehta Hai for Digital Payments (digital fraud prevention and grievance redressal), UPI Safety and Awareness Week,and Digital Payments Awareness Week.
How can women leaders contribute to innovative approaches in regulatory affairs that address both technological advancements and environmental sustainability?
India’s commitment to Sustainability is reflected in its adaptation of the customized SDGs for the 2030 agenda, closely aligned with the global commitment to sustainable development. This includes the mission of inclusion and sustainable growth. The significance of sustainability in businesses cannot be undermined. In addition to ethical considerations, a sustainable approach leads to multiple benefits ranging from reduced emissions, resource consumption, and long-term profits. Additionally, customers align themselves with brands that are compatible with their values and priorities. Some innovative ways in which women leaders can address both technological advancements and environmental sustainability include:
- Business with sustainable innovation: Sustainable business innovation is essential for financial profitability while ensuring environmental stewardship and social responsibility. Leaders should reconsider their operational, product, and service strategies in alignment with these goals. They play a crucial role in fostering sustainable innovation by promoting a culture of continuous learning, redefining success metrics, engaging with stakeholders, and leveraging technology to meet the sustainability goals of the organization.
- Embracing the Triple Bottom Line Rule: Leaders should integrate social, environmental, and economic factors into their decision-making processes to ensure a holistic approach, prioritizing both sustainability and profitability.
- Inclination to green tech: Technology advancements are associated with environmental footprints, energy consumption, e-waste, and resource depletion. Leaders should recognize this and choose sustainable technologies to reduce the ecological impacts of technology and strike a balance between technological advancement and environmental stewardship.
PayU India is providing climate finance for projects with an installed capacity of over 390 KWpin 220 villages across India using Distributed Renewable Energy Certificates (D-RECs). The initiative is in line with PayU’s commitment to transition to a greener economy through responsible business practices.
- Leveraging digital technology: One of the most significant ways technology aids sustainability is through data-driven approaches. By leveraging AI, ML, and big data analytics companies can accurately measure their environmental impact and identify areas for improvement.
How can women leaders in financial services navigate and influence regulatory changes during times of economic or technological crisis to support their organizations and broader societal goals?
Women leaders, in times of crisis, will need to step up with utmost resilience and patience to support the organization and regulatory compliance. Based on their expertise and experience, they may consider multiple advocacy strategies to influence regulatory decisions for the benefit of the organization at a micro level and for broader societal goals at a macro level. Some of the measures which they may adhere to include:
- Engagement with regulators/policymakers: Leaders should engage in proactive dialogue with prominent policymakers to explain challenges experienced by the industry and the need to adopt flexible and innovative policy approaches that balance social and economic interests. They should be well prepared to propose inputs on existing regulations and offer practical solutions to the crisis at hand. By working collaboratively, women leaders can help shape policies that are both effective and feasible.
- Collaboration with industry players: Leaders should collaborate with other industry leaders to build consensus on regulatory issues. This can be achieved through formal industry groups or associations or basic informal meetups. Collective industry input can lead to balanced and effective regulatory frameworks, demonstrating unified support for constructive policy changes.
- Collaboration with civil society: Women leaders can leverage media, academia and think tanks to voice their opinions. Multiple mediums such as op-eds, reports, articles, etc. may be used to amplify their position with meaningful full content backed by reliable data and best practices.
What metrics or indicators do you think are most effective in measuring the success of initiatives aimed at increasing women's participation in tech within the financial services sector?
Some indicators which I believe may be effective in measuring the success of initiatives aimed at increasing women's participation in tech within the financial service sector are:
- Trends in the number of women assuming tech-centric leadership roles: Fintech organizations deploying initiatives to enhance the participation of women in tech should monitor the trends in the gender of those persons occupying leadership positions in technical departments. Tracking designations such as CTOs, VPs of Engineering, or Heads of Data Science, etc. will serve as a useful indicator for evaluating these initiatives' success.
- Completion and application tech-centric courses: Fintech organizations, being tech savvy, constantly offer advanced technical courses to upskill their employees and stay competitive. Organizations should monitor the number of women enrolling in these courses and evaluate how these courses are being applied in the everyday functioning of the companies.
- Weightage in decision-making bodies: Fintechs should constantly evaluate the involvement and participation of women in decision-making bodies, such as tech committees or innovation councils, to comprehend the importance of women’s voices in strategic decisions within the organization.
- Career Progression: Monitoring and evaluating parameters such as the average tenure of women in tech-specific roles, rate of retention, and the time taken to attain promotions offer insights into the overall career progression of women.
How can industry leaders balance the need for robust regulatory compliance with the pursuit of innovative tech solutions that promote gender diversity and inclusion?
One of the critical challenges faced by industry leaders is striking a balance between robust regulatory compliances and adopting innovative tech solutions that promote gender diversity and inclusion. Some of the ways to achieve this balance include:
- Integrate compliance into innovation strategies: Leaders must ensure the mandated compliances are integrated into the product design and development at an early stage. This ensures that regulatory requirements are considered in innovative solutions, avoiding challenges such as retroactive compliance measures and devising risk mechanisms after development.
- Foster a culture of inclusion and compliance: Leadership within the organization should ensure that the core values within the organization reflect both diversity and a strong commitment towards compliance. It must be ensured that the employees are regularly sensitized about basics such as the significance of compliance, gender diversity, and inclusion.
- Leverage technology to enhance compliance and inclusion: Leaders should ensure that emerging technologies such as AI and ML, are deployed for automating compliance checks and streamlining compliance processes. The applications deployed should focus on inclusivity, accessibility of user interfaces, and using algorithms that avoid bias. The organization must also ensure that indicators relevant to gender diversity and inclusion are mapped and analyzed. Data analytics should be supported to map the scope for improvement and assess the impact of tech solutions deployed to foster diversity and inclusion.
- Stakeholder Engagement: Leaders should ensure that customer feedback is gathered from diverse groups to ensure that products meet their objectives. This helps in designing inclusive solutions and ensures that innovations are well received. Additionally, partnerships with relevant organizations can provide valuable insights and help in designing solutions that address both compliance and inclusivity goals.
- Best Practices: Leaders should focus on mapping industry best practices related to compliance and diversity and adopting them to provide a framework for balancing inclusion-focused innovation with regulatory requirements.
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