Skip to main content

Companies also upbeat, say fin services will be key to success

By
Building new markets and cross-selling of banking products will be key to the success of payments banks, companies shortlisted for such licences said.
The banks would work particularly well for entities with good customer reach and a base of operations such as cellphone companies.
Airtel M Commerce Services (a tie-up between Airtel and Kotak Bank), Department of Posts, Reliance Industries (in partnership with SBI), Paytm founder Vijay Shekhar Sharma,
Vodafone m-pesa, National Securities Depository Ltd (NSDL), Aditya Birla Nuvo and Fino PayTech are gearing up to set up payments banks.
But at a time when bad loans are bleeding banks’ balance sheets, what is it that is keeping these entities hopeful?
“We have set an year-end target for the launch, focussing on technology implementation and product development,” said GV Nageswara Rao, MD, NSDL.
NSDL, India’s largest depository, handles securities held and settled in dematerialised form for investors and brokers.
Vodafone and Airtel are India’s largest telecom operators, with customer base of over 194 million and 200 million, respectively.
Last week, India Post received the go-ahead to set up a payments bank with a corpus of ` 800 crore. Capitalising on its network of 154,000 post offices, all 650 branches of postal payments bank will be operational by September 2017.
Vijay Shekhar Sharma, cofounder of mobile wallet arm Paytm, will build on growing financial services to customers, and is in talks with non-banking finance companies and mutual funds.
Payments banks can also act as business correspondents (BCs) — the middleman between banks and customers situated at distant locations.
“We have tied up with 15 banks and have a total customer base of 100 million. With direct benefit transfer routed through bank accounts and being used via the Aadhaar or e-know your client (KYC) norms platform and e-wallets space, we believe the ecosystem is perfect for us to grow,” said Rishi Gupta, MD and CEO, FINO Paytech, India’s largest BC.
HindustanTimes New Delhi,08th June 2016

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more