Financial advisors must be regulated

We have achieved much in 60 years but a lot more still needs to be done. We need to meet the aspirations of the people and for that, financial inclusion is very important. We also need to increase in size for which we can grow both organically and inorganically. If our economy grows at 12 per cent for 10 years, we can grow organically itself and be of the size of global banks. This is how Chinese and Japanese banks have grown.

Four major areas are essential for the growth of banking. One, financial inclusion — regulation should facilitate opening bank accounts. Two, greater financial education — finance education should be made part of the school curriculum. A lot of innovation on this front is required. Three, technology will have to be embraced so as to carry financial products to people at low costs. Finally, those providing advisory services on financial products need to be regulated.

The author is CMD, Punjab National Bank