India's Financial System Faces Challenges Amid Savers-To-Investors Transition

Uday Kotak discusses the financial sector, which operates on two models: the saver and borrower model, encompassing banking and NBFCs, and the investor and issuer model, comprising markets, asset management, investments, and treasury. Customers transition between being savers and investors based on their financial decisions, depositing money in banks one moment and investing in mutual funds the next. While customers adapt to what suits them best, the financial sector structure often separates these two models, posing challenges.