In a groundbreaking address at the Global Fintech Fest (GFF), Nandan Nilekani, co-founder and chairman of Infosys, introduced the concept of ‘Finternet,’ heralding a transformative shift in the global financial landscape. Nilekani’s vision for Finternet is a unified, user-centric financial ecosystem that integrates all types of assets through a universal infrastructure.
According to Nilekani, the Finternet will fundamentally reshape how financial systems operate by focusing on three key principles: user-centricity, universality, and unification. This new approach is designed to cater to users’ evolving needs by incorporating advanced tokenization technologies and cryptographic advancements.
“The Finternet is a new approach to global finance defined by the three ‘U’s’: user-centric, unified, and universal,” Nilekani explained. “It places the user at the core and ensures that it spans all asset classes. By combining the strengths of regulated systems with the potential of tokenization technology, Finternet will enable universal interoperability and composability.”
The concept of Finternet encompasses a wide array of assets, including land, property, bonds, financial investments, art, and more. Nilekani envisions a financial system where these assets are tokenized and integrated into a single, accessible infrastructure. This would allow users to have greater control and participation in managing their assets, whether they are user-controlled, NFT-based, certified, or regulated.
“This isn’t a distant vision; it’s already in motion,” Nilekani asserted. “We are seeing Finternet come together through ongoing global projects and innovations. It’s not just theoretical; it’s being implemented as we speak. Several labs worldwide are actively working on this concept, and it will be developed progressively.”
Nilekani, alongside experts like Pramod Varma, Siddharth Shetty, Agustin Carstens, and the Bank for International Settlements (BIS) team, released a white paper in April 2024 outlining the Finternet framework. The paper highlights the practical steps being taken to bring this ambitious vision to fruition, emphasizing that the Finternet represents a significant leap forward in how we approach global finance.
With Finternet, Nilekani aims to address the growing demand for more choice and control in financial systems, ensuring that users can seamlessly interact with and manage a diverse range of assets in an increasingly digital world.
