The landscape of fintech innovation has witnessed remarkable growth, underpinned by a low entry barrier that has allowed diverse business models to flourish, according to MN Srinivasu, co-founder of BillDesk.
Speaking at the Banking Transformation Summit, he shed light on the pivotal role played by digital payments, especially in the wake of COVID-19.
Srinivasu emphasised that the fintech sector's rapid innovation was propelled by the accessibility and flexibility it offered to emerging companies with various business models. This fertile ground has led to the ascent of numerous players in the financial technology space, each bringing unique offerings and approaches to the market.
He went on to highlight the pivotal role that digital payments have played in the financial technology ecosystem. Srinivasu noted that the digital payment sector is currently experiencing a surge, largely driven by the widespread adoption of digital transactions.
This adoption has been further facilitated by regulatory frameworks and government policies that have championed the use of the Unified Payments Interface (UPI) as a free payment method.
Founder and CEO of SALT app, Shinjini Kumar highlighted that fintech companies bring all the services like lending, secured lending, credit cards together unlike traditional financial systems where distribution channels had to be built manually.
The revenue factor will return for the fintech companies, as markets or products stabilise. However, these companies are looking at different ways to make revenue and profits in the short term, Srinivasu said.
Sucharita Mukherjee, co-founder and CEO, Kaleidofin, stressed that the savings and credit need to be combined in the financial services system as customers need solutions.
She further said fintechs need to understand the customer and their needs in order to bring the right set of products together “but not like a supermarket and much more like a curator”. In this industry, the inherent advice is necessary to sell a financial service, she added.
Moreover, Chetna Sinha, founder-chairperson of Mann Deshi Bank stressed on the need for fintechs or banks to aim to make life easier for customers by understanding their cash flow, their ecosystem and providing solutions accordingly.
She said, “I would say that what I have learned from the last mile population, either it is for banking, or it is for fintech the one lesson I have learned is never give poor solutions to poor people.”
Sinha talked about RBI denying licence to Mann Deshi Bank as the promoting members who brought in the community capital could not read or write.
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