Anna Marrs

Fintech leaders know the existing legal framework and what can be the regulatory regime under this framework. RBI has already set the tone with draft guidelines on SROs. On their own, fintechs may develop their own codes of conduct focussing on ethical practices and customer protection. It will go a long way in creating bridges for trust between all stakeholders. Further, fintech sector not be seen two-dimensional - regulated and regulator. It will evolve into a complex industry in many ways.

5

1 Comment

🔸News Alert! RBI's Proposed Regulations for Payment Aggregators 🔸 Industry experts are buzzing with excitement over RBI's latest move! The draft guidelines for payment aggregators (PA) promise to revolutionize the digital payment landscape, ensuring trust and ethical practices. Here's why you should pay attention: ✅ Boost to PA Ecosystem: The proposed regulations are set to elevate the PA ecosystem, enhancing digital trust and fostering ethical practices. ✅ Level Playing Field: By setting standards and ensuring compliance, RBI's guidelines create a level playing field for all players, ultimately enhancing consumer protection. ✅ Inclusion of Physical Point of Sale (PoS): The updated definition of PAs now includes physical point-of-sale providers, bringing companies like Innoviti Payments, Pine Labs, and MSwipe under regulatory cover. ✅ Strengthened KYC and Due Diligence: With stricter KYC norms and due diligence measures, only eligible merchants can access digital payment services, further bolstering trust in the system. ✅ Fraud Prevention: The guidelines underscore the importance of fraud detection, emphasizing the purpose of KYC in preventing fraud and ensuring digital trust. Excited about the future of digital payments? Join the conversation and stay tuned for more updates! #RBI #DigitalPayments #PaymentAggregators #Regulations #Trust #Ethics

16

1 Comment

Credit card payments need to go through a single digital framework called Bharat Bill Payment System (#BBPS). What’s this BBPS about ? Why is there a regulatory nudge by Reserve Bank of India (RBI) to move the #payments sector towards a centralised system ? What’s in it for the consumers ? Is there a fear that such an #openbanking move could increase #competition ? What’s behind the stand-off and why won’t the RBI budge? My oped in The CapTable https://lnkd.in/dcKBVzrp (Behind a paywall)

5

Australian NBFC Pepper Money looks to set up NBFC business in India Australian non-banking finance company (NBFC) Pepper Money ANZ is looking to set up a payments and lending business in India. To this end, it plans to apply for an NBFC licence here in the next year or so. Pepper Global Group CEO Mike Culhane said that the parent company has committed $150 million to the India business with the aim of addressing the financial requirements of Indian consumers across small towns and cities in the country. With Abhishek Kothari as its CEO for the India business, Pepper Money India is looking to launch its first product in Indore and Lucknow. The company will offer a prepaid card to its users and any expenses incurred on the card will be backed by cashbacks and rewards. Natasha Jha Bhaskar Dorry Kordahi Nilaya Varma Nirmala Sitharaman Ajay Sethi Shameek Chaudhuri Piyush Goyal (मोदी का परिवार) Ministry of External Affairs, India Indian Ministry of Finance #fintech #finance #nbfc #AustraliaIndia #ECTA

68

7 Comments

IT Governance in Banks has been in the news over the recent past after a series of regulatory actions against lenders by the RBI. My piece here just provides an overview of the issues / challenges on this front. Comments welcome, as always.

152

11 Comments

Discover how India's digital payment landscape has evolved over the past decade and the transformative role of the Aadhaar Enabled Payment System (AePS) in bridging the gap for rural middle-aged to senior citizens. Join our Fraud & Risk Management Solution Lead, Gaurav Chimote, as he delves into the rise of AePS, its impact, and the challenges ahead. Read more on our blog! Animesh Jha Abhinav Rastogi #blogalert #newblogpost #Aeps #fraudprevention #frauddetection #wibmo

22

More musing about #thecraft: on (still nonexistent) IPOs as exit strategy in SEAsia - learnings from India financial services sector If you don't know yet, you should know this: India has the most IPO listings globally in 2023 with 238 listings - that's more than 4 IPOs per week 😱Comparatively, the US only saw 154 new listings last year. And this is not just a blip for India as the run rate in 2024 looks set to beat the US again The below report from Unitus Capital is full of golden nuggets of insights from the financial services sector, specifically on lending businesses - 341 IPOs just by lenders over the last decade! The biggest takeaways for me that's relevant to SEAsia fintech/financial services/lending sector: - if IPOs here is still a question mark, little precedent in the last decade. Then what's the exit path of SEAsian lenders (some of which are already at unicorn valuation)? - median listing valuation in India was ~USD 600 million - had to get some help from online calculators to convert INR crores to USD 😥 . Definitely much higher compared to SEAsian median listing valuations. And great that VCs/PEs can use this data point in the fund model not just assumptions - P/B multiple range from 1-3x. This will be the real test for SEAsian lenders who are still private - can they grow into the lofty valuations given during ZIRP? Awesome report with great insights, kudos to the UC team! Eric Savage Abhijit Ray etc

11

BANKS SEEK CLARITY FROM RBI ON CREDIT CARD NETWORK NORMS Some banks have approached the Reserve Bank of India (RBI) for clarity on guidelines requiring them to offer existing credit card customers a choice of networks such as Rupay, Visa, and MasterCard. READ MORE https://lnkd.in/dVGCukTK YES BANK RESTRUCTURES WORKFORCE, LAYS OFF 500 EMPLOYEES IN COST-CUTTING MOVE Private sector lender Yes Bank has given marching orders to at least 500 employees in a restructuring exercise that could see more such layoffs in the coming days, multiple people aware of the development said. READ MORE https://lnkd.in/dkb3Xj7g ONTARIO TEACHERS’ BUYS INTO NBFC KOGTA READ MORE https://lnkd.in/dCKmTquG

1

Our team at NiVa did a ground level survey with appx 800+ merchants across Pune , Delhi-NCR and Bangalore for various payment apps and in one of our insights about various payments apps we can see Paytm winning with huge margins across various metrics After reviewing the data , it's clear that Paytm is leading across all categories compared to other digital payment platforms like PhonePe, Cred, Google Pay, and Bharatpe. Fast Payments: Paytm has the highest bar with 85.7%, indicating it is the most preferred option for fast payments. Less Fraud: Paytm also tops the chart with 82.9% for being perceived as the most secure and fraud-resistant payment method. Service: In terms of customer service and support 88.6% , Paytm is ranked the highest by users. Less Fees: Paytm is considered the most affordable option with 48.6% with the lowest transaction fees. Multiple Payment Options: Paytm offers the widest range of payment choices with 88.6%, catering to diverse user preferences. The data unambiguously shows that Paytm outperforms its competitors across all the factors analyzed, including speed, security, service, affordability, and payment flexibility. It emerges as the dominant player in the digital payments space based on this comprehensive user preference study. This remarkable dominance holds valuable lessons for other players, including the up-and-coming NiVa platform. Firstly, prioritizing user experience is paramount – Paytm's seamless interface and rapid payment processing have struck a chord with consumers. Secondly, engendering trust through robust security measures and fraud prevention is non-negotiable in the fintech realm. Furthermore, Paytm's commitment to customer support and reasonable pricing has cultivated loyalty, underscoring the importance of putting users first. Lastly, offering a diverse range of payment options caters to varied preferences, expanding the user base. As NiVa aims to carve its niche, emulating Paytm's user-centric approach, technological prowess, and innovation in areas like security and payment diversity could be game-changers. In the fiercely competitive digital payments arena, learning from the industry leader may pave the way for NiVa's success. Vijay Shekhar Sharma Kudos to you and your team at PayTm !! #paytmkaro #fintech

7

An excellent step forward, as India navigates the evolving landscape of digital finance and collaborative initiatives by RBI signaling a commitment to transformative potential of CBDC #Fintech #CBDC #Digitaltransformation

6

Who Pays for Inclusion? That is the fundamental question. In the real world, it’s the haves who have to pay for the have-nots. Governments and NGOs established should at the best be allowed to deliver inclusion through policy design. The cost of inclusion or the removal of poverty and misery is a cost that the wealthy must bear through income tax and donations. However, these methods are often regressive. Investments in skilling and employment in a democratic economic environment, with the right to basic laws, provide a better method of upliftment. Every service has a cost, and the method by which this cost is borne determines the efficiency of the process. Capitalism, as the real economic growth model, can make a critical difference by unleashing technology-driven progress where technology serves as a public good. This approach can significantly improve the lives of the have-nots. Ultimately, some will always be very rich, and some will be poor. However, basic rights like food, shelter, clothing, education, and medical care should be accessible to all. True progress stems from bottom-up growth, not top-down. What are your thoughts on this? How can we better balance the scales of economic disparity? Let's discuss. #Inclusion #EconomicGrowth #SocialJustice #TechnologyForGood Sumita Kale Yasmin Riaz IIMA Ventures Anil Kumar Gupta

14

Regulation drives innovation and change is imminent in fintech. But adaptation requires strategy. Here's my take on The RBI's new draft on Payment Aggregators: It is more than just paperwork; it's a catalyst. By mandating KYC norms and requiring authorization for both physical and online non-banking PAs, the RBI is setting a higher standard. What does this mean? 📌 𝗙𝗼𝗿 𝗣𝗔𝘀: Increased operational costs and a steeper path to merchant onboarding might seem daunting. Yes, it may limit the immediate pool of merchants. The new standards necessitate a solid compliance structure. It's a tough pill to swallow, but it ensures a safer transaction environment. 📌 𝗙𝗼𝗿 𝗠𝗲𝗿𝗰𝗵𝗮𝗻𝘁𝘀: Sweet pot of getting regulatory framework protection plus structured grievance redressal mechanism 📌 𝗙𝗼𝗿 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀: This is where the true benefit lies. Enhanced data security, better fraud prevention, and a streamlined grievance mechanism directly contribute to customer confidence and trust in digital transactions. The road ahead will have its challenges. However, the long-term benefits of these regulations will fortify the foundations of our digital economy, making it more robust against the risks that come with rapid growth and innovation. As leaders in fintech, how should we prepare for these changes? 𝗘𝘅𝗽𝗹𝗼𝗿𝗲 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗥𝗕𝗜 𝗱𝗿𝗮𝗳𝘁 𝗵𝗲𝗿𝗲. https://lnkd.in/g3dHXCxr https://lnkd.in/gFwF-mGH 𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘆𝗼𝘂𝗿 𝘁𝗵𝗼𝘂𝗴𝗵𝘁𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗶𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝘁𝗵𝗲𝘀𝗲 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻𝘀 𝗼𝗻 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗳𝗶𝗻𝘁𝗲𝗰𝗵? #dhanasekaran #fintech #belstar #mfitech #paymentaggregators

19

🏦💳 With the RBI’s mandate for BBPS integration now in full effect, a number of banks—including two of India’s largest credit card issuers—are yet to comply. What’s behind the stand-off and why won’t the RBI budge? Read Srinath Sridharan's full story for The CapTable to know more, via the link in the comments.

16

1 Comment

Our article on innovative financing solutions for MSMEs is featured in CXOToday, many thanks! Customers (Retail and Wholesale) are increasingly discerning and platforms need to keep pace to ensure that they can provide top-notch credit solutions to their clients. #india #msme #msmeindia #loans #credit #innovation #interfaceventures #indirow

31

This week saw two large credit card issuers #SBIcards & #HSBC splash the front pages of the newspaper with their new credit card launches. Credit card market is growing even though the card schemes namely Visa & MasterCard are feeling the heat. The total number of credit cards in India, crossed 10 crore mark in February, and reached 10.2 crore by the end of March, indicating a 20 per cent increase from the previous year's 8.5 crore. Incidentally number of transactions have increased faster than transaction volume indicating customers are increasingly using cards for smaller Purchases. Average transaction value should fall more with card transactions now available on the UPI network.

28

2 Comments

T-Hub congratulates Enmovil on securing pre-Series A funding, led by Caret Capital, Ev2 Ventures, JRG Holdings, and Anicut Capital LLP as Co-Investors. Founded by Ravi Bulusu, Nanda Kishore, and Venkat Moganty, Enmovil is an integrated Enterprise SaaS platform that optimizes multi-modal logistics and supply chain inefficiencies. Enmovil’s customer base includes industry giants such as Nestle, Bajaj Auto, Steamhouse, Nipro Medical, Grasim, Eicher, Maruti Suzuki, Vedanta, Hero, Hindware, Daimler, and Ashok Leyland. This has contributed to noticeable growth in India’s supply chain industry, with its value rising from $225 billion in 2020 to a projected $637 billion by 2025. T-Hub wishes Enmovil continued success as they revolutionize the logistics industry! #InnovationEcosystem #InnovatewithTHub #StartupSuccess #SaaS

156

7 Comments

Bengaluru-based neobank 𝐅𝐢.𝐦𝐨𝐧𝐞𝐲 has just secured a coveted non-banking financial company (NBFC) license from the Reserve Bank of India (RBI). This significant milestone opens up a world of opportunities for Fi, allowing it to broaden its financial offerings and deepen its impact on the Indian market. With backing from prominent investors like Peak XV Partners and Temasek, Fi is poised for accelerated growth in the ever-evolving landscape of digital finance. This milestone marks a pivotal moment in Fi's journey, empowering it to offer a wider array of financial services to its users, including the potential to provide loans directly from its books. The NBFC takeover not only streamlines Fi's operations but also positions it competitively against other fintech startups in India. By eliminating the reliance on external loan sources, Fi can now tailor its lending services to better suit the needs of its customers, further enhancing its value proposition in the market. But what does this mean for the broader fintech ecosystem? The NBFC takeover or acquisition route presents several advantages for both aspiring startups and established players looking to expand their reach: 𝐈𝐧𝐝𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐜𝐞 𝐚𝐧𝐝 𝐂𝐨𝐧𝐭𝐫𝐨𝐥: Acquiring an NBFC license grants firms like Fi greater autonomy over their operations, reducing dependency on external partners and enhancing control over key financial offerings. 𝐃𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬: With an NBFC license in hand, fintech companies can diversify their product portfolios, offering a comprehensive suite of financial services ranging from savings accounts to investment planning and now, direct lending. 𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐝 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞: Operating as an NBFC requires adherence to strict regulatory standards set by the RBI, ensuring heightened consumer protection and fostering trust among users. However, navigating the regulatory landscape for NBFC takeovers requires careful consideration and adherence to RBI guidelines: Prior consent from the RBI is essential for any change in management or shareholding that results in a significant acquisition or transfer of the NBFC's paid-up capital. Detailed documentation, including sources of funds, information on proposed directors or shareholders, and declarations of non-affiliation with entities denied by the RBI, is mandatory for any NBFC takeover. Fi's successful acquisition of an NBFC license marks a significant step forward in its mission to democratize access to financial services in India. As the fintech sector continues to evolve, such milestones underscore the importance of regulatory compliance and strategic planning in driving sustainable growth and innovation. Exciting times lie ahead as Fi and other fintech disruptors reshape the future of finance in India and beyond. #Fintech #NBFC #Takeover #Innovation

18