Context:
In a data release, which comes amid concerns on the personal loans front, which have even led to actions from RBI to curb lending in it, Fintech Association for Consumer Empowerment (FACE) said the loan outstanding dropped to ₹66,683 crore.
Fintech Association for Consumer Empowerment (FACE)
FACE is a Self-Regulatory Organisation in the FinTech sector recognized by RBI, established in September 2020. FACE aims to build a consumer-centric FinTech ecosystem in India, with financial services that are safe, suitable, and transparent. Some of the objectives of FACE include enabling financial services that give priority to consumer needs and safety.
- A self-regulatory organization (SRO) is a non-governmental organization that regulates a profession or industry. SROs create rules to promote order and compliance, and to protect consumers and stakeholders.
Role of FACE in FinTech Ecosystem
- A governance body within rapidly emerging FinTech space.
- FACE is seen as an aggregating point where FinTech service providers, facilitators, as well as any other interested stakeholder could join.
- FACE acts proactively to find solutions for new problems, control risks, and ensure sound business conduct.
- FACE can also be considered a consumer’s advocate who promotes awareness of safe and suitable financial products and services.
Challenges Facing the FinTech Industry
- Regulatory Uncertainty
- Despite its fast growth rate, the FinTech industry still faces regulatory challenges.
- Cybersecurity Risks
- High cybersecurity standards can be achieved only by sustaining the confidence of consumers.
- Financial Literacy
- FACE aims to improve financial literacy through campaigns and education of consumers.
Achievements and Contributions of FACE
- Standards
- FACE has formulated a code of conduct for its members.
- Increasing Financial Inclusion
- FACE is involved in financial inclusion, especially for the underprivileged masses.
- Providing a Forum to Engage
- FACE serves as a forum where stakeholders can discuss relevant matters.
