India’s $10-trillion future will redefine banking, says V. Vaidyanathan at GFF 2025

India’s journey to becoming a $10 trillion economy will reshape the country’s financial system and redefine how banks operate, said V. Vaidyanathan, MD & CEO of IDFC FIRST Bank, speaking at the 6th Global Fintech Fest (GFF) 2025 in Mumbai. He also predicted that green finance and cybersecurity would become core themes in the next decade, emphasising that these are now essential rather than optional for sustainable growth.

“If you think about it, 10 years is a long time ahead. In 2015, none of us could have imagined UPI or account aggregators at this scale,” Vaidyanathan said, adding that while technology keeps evolving, the need for credit, investments, and savings will never change.

Looking at the economic trajectory, Vaidyanathan said India’s GDP had risen from ₹125 lakh crore in 2015 to ₹331 lakh crore today—a 2.6 times jump. “If we assume a nominal growth of around 10%, we are talking about a $10-trillion economy in the next decade,” he noted.

He added that this growth will have a significant impact on banking, with credit expected to reach $6.5 trillion and household consumption to surpass $3.5 trillion. “The discretionary spending portion will rise sharply, opening new areas for financial products, travel, housing, and lifestyle,” he said.

Vaidyanathan explained that this increase in consumption and credit will have significant effects on banks and financial institutions. “Money will have to move somewhere—into mobility, housing, healthcare, wellness, education, lifestyle, and financial products,” he said. He observed that India’s credit had already grown from ₹65 lakh crore to ₹182 lakh crore over the past decade and is expected to surpass ₹567 lakh crore by 2035. “These are not fanciful numbers—they are reasonable projections of 12% nominal growth,” he added.

On how technology will redefine the customer experience, Vaidyanathan said that personalisation and data integration will be central to the future of banking. “Imagine being able to see your savings, mutual funds, EPF, real estate, and loans, all in one single view. That’s where open banking is taking us,” he said. He explained that by connecting fragmented customer data across institutions, banks can deliver a complete, personalised view that drives trust and convenience. Adding that India’s banking future rests on digital strength, data analytics, and inclusivity, he said, “We were born into a digital ecosystem—that’s what helped us grow deposits and loans rapidly.”

Vaidyanathan also emphasised that banking must become simpler and more inclusive. “The next decade will belong to those who combine simplicity with technology and inclusion. We at IDFC FIRST Bank keep things simple—a zero-fee bank account, 7% interest, and monthly interest payouts. Future banking must simplify products, especially for low-income and unbanked customers,” he said.

The bank’s CEO stated that digital transformation is the future, but physical branches will still play a role. “It’s increasingly clear that the future is digital. Physical is only going to take you so far,” he said. He pointed out that true inclusion comes from digital financial solutions that can reach small entrepreneurs and informal sector workers.