The world fintech movement happened in 2008 when the entire world was under trouble. Even after demonetisation when the entire dynamics changed, Fintech emerged as a big player. So, in my view, not just Fintech, but banks and large NBFCs who have invested in leveling-up their digital dimension will do exceptionally well, said Sameer Singh Jaini, CEO, The Digital Fifth during a virtual panel discussion hosted by Elets Technomedia.
Excerpts of the address:
During this crisis situation, people have become prudent pertaining to their expenditure on non-essential items. We no longer go out and spend lavishly on movies and restaurants. So, this is a challenging time for the payments sector for sure. Not just cash but the digital payments usage is also limited as people are resisting themselves on spending over non-essential items. However, people are getting trained in pure digital transactions.
Unified Payments Interface (UPI) net new users have dramatically gone-up. There is definitely a positive long term growth for e-payments but for the time being, there is a contraction. Lending, particularly for short-term lenders both in the SME and the retail side, is significantly hit. The cycle is broken which means that many will not have a way to get the repayment. So, Non-Performing Assets will go up for sure. Industries such as wealth investments will definitely do good as people are now carefully reading and analyzing their wealth management and insurance because people are willing to secure their future. Besides, B2B will grow like anything during this time.
The world fintech movement happened in 2008 when the entire world was under trouble. Even after demonetisation when the entire dynamics changed, Fintech emerged as a big player. So, in my view, not just Fintech, but banks and large NBFCs who have invested in leveling-up their digital dimension will do exceptionally well.
This is the time when, CXOs of big financial entities who were running after the sales number must emphasise on right and relevant strategies. I strongly believe that, large financial institutions will also join the digital game on their own or in collaboration with Fintech.
Digital, in the long run, post the pandemic period, will being dramatic growth across lending, payments and wealth management industries.
This period will change a lot many things forever. As people have learnt the art of working from home, office based job will see a fall. Cost realization in terms of salaries will also happen and people asking for bizarre salary structure will come down.
The top-line will improve because of the digital boost and the bottom line will equally grow because the cost structure will be.
Watch the live coverage of the webinar here:
https://www.facebook.com/BFSIPost/videos/1503215146522706/
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