This is one of the most exciting times for Indian banking and financial services industries. FinTech or financial technology companies have emerged as a new crop of firms which have a high growth potential and many opportunities for disruptive innovation. They can complement the traditional banking services and help in financial inclusion. In some quarters, they are seen as competition to the classical banks also. FinTech, a very trendy industry for start-ups, has the potential to take away 4.7 billion dollar of revenue from traditional financial services, according to a US-based Finance firm, Goldman Sachs. FinTech has evolved from startups that want to take on and compete with incumbents to a broader ecosystem of different businesses that are, in many cases, looking for partnerships. Bureaucracy Today analyses the pros and cons of this new financial phenomenon.
A CII-PwC report titled Inclusion 2.0: Leveraging technology disruptions to realise India’s digital economy highlights the role and importance of FinTech companies which are now enabling the mass adoption of technology by collaborating with various traditional banking and non-banking players and ensuring that services reach the rural strata of society quickly and efficiently. Such companies have been termed disruptors in the financial services space.
The scope of FinTech companies to co-exist with the traditional financial institutions (FIs) is immense since Indian banks face very structural challenges.
Inadequate infrastructure: People in the rural areas of India still have to travel miles to access a banking interface. Although ours is a vast country, it has only 2.3 lakh ATMs and 14 lakh point-of-sale terminals which are almost half the number of such facilities in other developing countries and one-fourth of that in the developed countries.
Financial literacy: According to a survey by Standard & Poor’s Financial Services LLC7, 76% of the Indian adults are unable to understand key financial concepts. Lack of adequate knowledge results in confusion, apprehensions and obstacles which prevent people from availing themselves of the many banking products and services.
This story is from the June 1 - 31, 2017 edition of Bureaucracy Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the June 1 - 31, 2017 edition of Bureaucracy Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Bridge Between Hunger & Food Security
It is a matter of pride for all of us that India has become the fifth largest exporter of agricultural commodities. But it is home to 1,946 lakh crore undernourished people too, the highest in the world, according to the annual report by the Food and Agriculture Organization of the United Nations. This translates into over 15 per cent of India’s population, exceeding China in both absolute numbers and proportion of malnourished people in the country’s population. India’s gross domestic product grew 7.6 per cent in 2015-16 but this higher economic growth has not been fully translated into higher food consumption.
Where Indians are Investing Today?
Traditionally, there has been a high affinity for having physical assets such as precious metals, jewellery and real estate among Indians which started changing quite rapidly over the last decade. The reasons are varied. One important factor playing a role here has been the increased penetration of financial instruments tapping people living even in remote villages. The result is: the“only store of value”feature offered by physical assets is fast disappearing.
Has Bureaucracy Failed Narendra Modi?
The ambitious Swachh Bharat Abhiyaan, which was officially launched on October 2, 2014 amid much fanfare with Prime Minister Narendra Modi himself cleaning the road with a broom at Rajghat in New Delhi, was seen as a harbinger of change which would influence the behaviour of millions of Indians who are notoriously known for dumping their wastes in public places. For months, bureaucrats wielding the broom also continued to dominate the media space. However, over two years since the campaign was launched, the cleanliness zeal, it seems, has taken a backseat. A reality check done by Bureaucracy Today in Shastri Bhawan in Lutyens’ Delhi which houses major Central Ministries indicates that those in the corridors of power are not readying themselves to become part of a new, clean and swanky India.
CRWC Plans to Diversify From Its Traditional Warehousing
Giving a boost to railside warehousing operations in India, the Central Railside Warehouse Company Ltd, a subsidiary of the Central Warehousing Corporation, is planning to set up 10 warehouses at railheads to store commodities besides upgrading its existing 19 warehousing complexes in India for Rs 200 crore. In a conversation with Bureaucracy Today, KU Thankachen, Managing Director of the CRWC, talks about its expansion plans.
‘Gems and Jewellery Industry Lacks Proper Training Network in India'
The Government and the Ministry of Skill Development and Entrepreneurship have taken several skill development measures such as the Pradhan Mantri Kaushal Vikas Yojna (PMKVY) and created a benchmark at the national level for skilling in India. However, artisans in the gems and jewellery industry who contribute majorly to the jewellery creation process lack certifications and are struggling to make their both ends meet. In a conversation with Bureaucracy Today, Binit Bhatt, Chief Operating Officer of the Gem and Jewellery Skill Council of India, talks about skills in this industry.
Breathing A New Life Into The Indian Healthcare System
On the occasion of World Health Day on April 7, Prime Minister Narendra Modi had said that his Government is leaving no stone unturned in providing quality healthcare that is accessible and affordable. Making an effort in this direction, the Health Ministry under the administrative acumen of the Health Secretary, CK Mishra, is working on a war footing to galvanise the sluggish healthcare system of India to deliver affordable health and well-being to the last man in the row. However, the real challenge in the path for Universal Health Coverage lies in effective implementation which calls for cementing consensus between State Governments and the Centre. In a candid conversation with Bureaucracy Today, Union Health Secretary Mishra speaks about the increasing coordination between the Centre and the States in the recent times and also sheds light on other issues like making generic medicines available to people and the regulation of the private healthcare sector which are of top priority for his Ministry.
Central Bank Drags BoM In Court
As all nationalized banks are working under the control of the Reserve Bank of India they are expected to follow the rules and regulations codified by the same regulatory authority. But if some unforeseen incident happens and if there is no co-ordination or co-operation between the banks, they are susceptible to legal confrontation. This has happened in the case of a stolen cheque which was deposited in one bank and was cashed by the person who stole it by producing it in another bank.
Can Domestic Manufacturers Capture a Larger Pie of Indian Solar Market?
Solar installations in India reached 4 GW in 2016, and are expected to surpass 9 GW in 2017, an incredible pace of growth considering our country installed just 883 MW in 2014. With exponential growth in the sector, the Government wants to ramp up domestic manufacturing to decrease the volume of solar module imports which, along with installations, has also increased dramatically. The challenge, like in most markets, has been that of cost competition from Chinese manufacturers. India lost its case at the World Trade organization (WTO) last year which ruled that its Domestic Content requirements (DCR) discriminated against US manufacturers. With this backdrop, Indian policy makers are now looking at various options to support domestic manufacturers without violating global trade agreements.
Accelerating Sustainable Development Towards 2030
Taken together, the 17 Sustainable Development Goals (SDGs) – contained in UN Resolution 70/1 involving the 194 member States and civil society in its deliberation – seek an encouraging level of development of humanity’s social and environmental existence. They establish a framework through the year 2030 that can assist the nations and communities of the world in plotting what could amount to transformative, prosperous, and sustainable achievements. How can this potential development unfold and be long-lasting? What approaches should we catalyse so that sustainable projects result in and generate the human development benefits the world’s local publics want and need?
The Reshaping Of Urban India
India is moving away from villages and is set to soon become more urban. To meet this demographic transition, experts say that we need to build 22 new Bengalurus besides recasting the landscape of the present 4,041 cities for a better living. The past is not encouraging. But can we make the future perfect?
