The New Indian Express ·
Treat technology as a means to an end: RBI Deputy Gov Jain
MUMBAI: Stating that new technologies being deployed in the financial sector should remain a means to an end, Reserve Bank deputy governor Rohit Jain has said the starting point has to be the purpose that a technology is intended to serve or achieve and not merely ite newsness.
Addressing the seventh global fintech summit here Wednesday, the junior most deputy governor said; “if the purpose of a technology deployment has endured, then that purpose should also be our reference point when evaluating new technologies which can make financial services faster, cheaper and more accessible.“
But the more important question is whether they solve a genuine financial problem better, who benefits from that improvement, and what new costs or risks may arise in the process?” he said, as there is no guarantee that the gains of lower costs and removing friction, will not necessarily reach everyone.Noting that technologies have made cost of financing much lower, widened the access, and strengthened the risk management, thus making finance more responsive, he said yet the technologies also raise important questions about resilience, accountability, and the choices we make as these technologies scale.