Visakhapatnam holds potential to emerge as thriving fintech hub: Neokred co-founder

With the increasing acceptance of technological advancements, the fintech industry is undergoing a significant transformation, offering myriad solutions to the challenges faced by financial technology experts and entrepreneurs.

Currently, the fintech sector is experiencing notable expansion, fueled by various key factors reshaping the financial landscape. As India's premier provider of embedded and comprehensive banking services, Neokred is deeply ingrained in this dynamic evolution. Rohith Reji, Co-Founder of Neokred, highlighted that the fintech industry is witnessing rapid growth propelled by technological innovation, evolving consumer preferences, and supportive regulatory frameworks.

In an exclusive interview with Bizz Buzz, Reji said, "Neokred takes pride in spearheading this transformation, delivering innovative fintech solutions that empower both businesses and individuals. Looking forward, we are steadfast in our commitment to driving further growth and innovation in the fintech sphere, thereby shaping the future of finance in India and beyond

How is the fintech industry growing, and what are the growth projections?

The fintech industry is booming, propelled by technological advancements, evolving consumer preferences, and supportive regulations. Neokred, as India's premier provider of embedded and beyond banking as a service; fintech solutions, is deeply entrenched in this transformation. Innovations like blockchain, artificial intelligence (AI) and machine learning are reshaping financial services, offering efficiency and security. Consumers are increasingly seeking convenient digital alternatives to traditional banking, driving fintech adoption.

Regulatory initiatives worldwide, including in India, provide stability and encourage innovation. With global investment in fintech ventures on the rise, particularly in emerging markets like India, the industry is set for exponential growth. Neokred remains committed to driving further innovation, shaping the future of finance in India and beyond.

Visakhapatnam, the industrial hub of Andhra Pradesh, is promised to be developed as a fintech hub by successive governments. How do you see the potential, and what are the prerequisites for transforming any place to attract major players in the fintech space?

To transform Visakhapatnam into a fintech hub, it's imperative to focus on key factors. Firstly, robust infrastructure encompassing digital connectivity and modern office spaces is crucial to attract fintech players. Government policies must prioritise ease of doing business and offer incentives to foster entrepreneurship in the region. Secondly, collaboration among government, academia, industry, and the private sector is essential. Partnerships with universities, research institutions, and fintech accelerators can facilitate knowledge sharing and R&D initiatives. Government-industry collaborations can also lead to funding schemes and mentorship programs, nurturing fintech startups.

Lastly, fostering a supportive ecosystem through events like hackathons and startup competitions encourages innovation and attracts major players to the fintech space. With a strategic approach and commitment from all stakeholders, Visakhapatnam holds the potential to emerge as a thriving fintech hub, driving economic prosperity and technological advancement in Andhra Pradesh and beyond.

What inspired the creation of Neokred, and what vision do you have for the company's future?

As Co-Founders of Neokred, Tarun Nazare and I are driven by the transformative potential of open banking. Our mission is to democratise access to financial services through cutting-edge embedded finance solutions. With a focus on seamless transactions and personalised finance, Neokred empowers businesses to thrive in the digital economy. Our innovative products redefine traditional financial systems, driving growth and innovation across industries. Looking forward, we are committed to leading the embedded finance revolution, shaping the future of finance through continuous innovation and expansion.

How does Neokred differentiate itself from other players in the embedded finance or beyond banking as a service (BaaS) space?

Neokred stands out in embedded finance and BaaS for our commitment to empowering businesses, particularly SMEs. Unlike others, we offer tailored solutions, recognising that one size doesn't fit all. From personalised payment processing to cash flow management, we ensure a seamless experience for every client. Our dedication to SMEs underscores our mission to support their growth in the digital economy. In essence, Neokred's differentiation lies in our personalised approach, focus on SMEs, and commitment to delivering tailored solutions for business success.

What are some of the biggest challenges you have faced in building and growing Neokred, and how have you overcome them?

Neokred's journey has been an exhilarating ride typical of startups, filled with challenges like securing investment and pinpointing our target audience. Convincing investors required meticulous planning and unwavering confidence. Understanding diverse business needs demanded extensive research and adaptation. Despite these hurdles, our team's resilience and shared commitment propelled us forward. Through perseverance, collaboration, and adaptability, we overcame obstacles and established Neokred as a leader in embedded finance solutions.

What are some regulatory considerations and challenges specific to BaaS solutions in India?

India's BaaS regulatory landscape, shaped by RBI directives, poses challenges in KYC, AML, and data privacy compliance. Providers must ensure robust customer verification and data protection, often requiring licenses like PSO or NBFC. Data localisation mandates entail infrastructure investments. Interoperability standards ensure smooth transactions, while cybersecurity measures are crucial. Transparency and efficient grievance redressal are vital for consumer protection. BaaS providers must establish strong risk management frameworks and stay updated on regulations for continuous compliance, fostering trust, innovation, and sustainable growth. Compliance ensures customer trust and resilience against cyber threats, vital for long-term success in India's financial ecosystem.

How do you see Neokred collaborating with traditional financial institutions to create a more inclusive and accessible financial ecosystem?

Neokred envisions transformative collaboration with traditional financial institutions to pioneer inclusivity in the financial ecosystem. We offer innovative solutions in KYC procedures and payment processing, tailored to meet regulatory standards while streamlining operations and enhancing security. By actively listening to their challenges, we empower institutions to thrive in the digital landscape through cutting-edge technologies and strategies. Our vision is to co-create a future where traditional and modern technologies seamlessly integrate, fostering greater financial inclusion and empowerment for all.

What are your plans for expanding Neokred's product portfolio and reaching new markets?

We are expanding Neokred's product portfolio and entering new markets with innovation and a commitment to improving lives. Our flagship product, Polici, addresses specific citizen pain points, enhancing financial experiences through tailored solutions. We continuously refine our offerings, optimise procedures, and pioneer new tools to empower customers. Expansion efforts include strategic partnerships and market entry. With our core commitment to technology-driven positive change, we are poised to thrive and make a lasting global impact.

What are the potential impacts of emerging technologies like blockchain and artificial intelligence on the future of finance?

The emergence of blockchain and AI in finance promises transformative impacts. Blockchain ensures secure transactions, reducing fraud with its transparent ledger. AI enhances security with real-time fraud detection and operational streamlining. Together, they facilitate financial inclusion by offering secure digital identities and alternative credit scoring. From a regulatory perspective, blockchain simplifies compliance efforts, aided by AI's analytical capabilities. In essence, the convergence of blockchain and AI heralds a future of finance that is more secure, efficient, and inclusive. Financial institutions can unlock innovation and societal impact globally through these synergistic technologies.

Would you wish to give any message to budding startups looking to innovate and disrupt the fintech sector?

The journey ahead presents both challenges and opportunities. Success relies on solving genuine customer problems; listen closely, understand their pain points, and devise impactful solutions. While innovation is vital, it must be balanced with responsibility, prioritising security, compliance, and ethics to build trust and credibility. Embrace setbacks as learning opportunities, iterate quickly, and strive for excellence. Adaptability and resilience are crucial. Build a diverse, talented team, foster innovation, and empower them to drive change. Stay focused, persevere, and seize every opportunity to make a meaningful impact in the fintech landscape. Despite the challenges, the rewards for daring to innovate are boundless.