The first IFS Group Round Table successfully established an exciting and soul searching discussion regarding the state of the Financial Services sector. It clearly set the tone for the forthcoming India Finance Summit conference and identified the need for a compelling platform like the IFS Group.
Specifically, the Round Table sought to address specific systemic issues that are affecting the long term sustainability of this important market sector –
- Has the time come to completely re-architect the India Financial Services sector instead of just making token changes?
- What are the current global best practices that we can introduce in the financial market?
- Is the capital market becoming a private club belonging to a few instead of remaining a public market? How can we revive the interest in it?
- Is a regulatory overhaul needed because the existing framework is not working? Are the regulators equipped to understand the intricacies of processes of the sector?
- Do we need ‘de-siloisation’ of financial verticals?
Further it was felt that there are specific steps that the industry, along with the policy makers / regulators, need to take to take for a robust growth and long term direction –
- Rethinking required on the Concept of Financial Inclusion – Who should be included in it, the rural-urban financial divide.
- Need for Macro and Micro linkages in the Indian banking ecosystem.
- Are there issues within the regulators themselves? Is having a super-regulator the solution? Is over regulation killing our financial markets?
- Rethinking the practicalities and processes involved in mutual fund, pension fund investing. Bringing transparency, reducing transaction time and costs etc.
- A look at the current surveillance, punishment and disgorgement system to ensure that investors have confidence in the system.
- There is a need to draw a line between safety and economic growth. How do we keep our financial system safe?
The persuasive arguments put forward by the members on the debatable topics and the direction of the summit reinforced the need for an unbiased BFSI platform. Clearly a dream start for a distinctive community centric BFSI platform.