Rishi Gupta, MD & CEO, FINO PayTech, talks to Anand Adhikari about what it entails to succeed in the payments bank space.
The competition in the digital payments space is intensifying. Is there space for all?
There is enough space for multiple players along with other emerging payments and banking technologies to co-exist. Each player will bring its own strengths, ultimately benefiting the customer and helping the market evolve. Emerging technologies and business models have been driving the payments space.
What are the best lessons you have learnt from some of the new entrants?
Innovation, agility and new thinking! Innovation in the payments space has picked up in the past few years, thanks to the emerging digital ecosystem. We introduced biometric smart card solutions in enabling financial inclusion, and empowered our BC network with technical knowledge to conduct banking transactions. We will continue to innovate.
RBI regulations ensure that fintech companies cannot get into full-fledged banking. Will this change in the long run?
Things that were once inconceivable are now happening in the banking space. The perception is that lines are blurring between banks and fintech companies. Finally, it is RBI's call.
What is the key to making a payments bank profitable? How important are partnerships with banks and NBFCs?
The payments bank model is based on low-value, high-volume business. Having a critical mass of customers who transact regularly with the products and services on offer is paramount. Tie-ups allow payments banks to offer those services, but it is the efficiency in engaging and servicing the customer base that makes the difference. ~