Something rather unprecedented happened at the Nasscom India Leadership Forum 2017 in Mumbai, on 17 February 2017. Aditya Puri, who has been leading HDFC Bank, India’s largest private sector bank, for nearly a third of his life, said: “Wallets have no future.” New payment banks were making chicken curry without any chicken in it, said the 66-year-old Puri. The chickens he was referring to are the customers. “You get me the chicken and then I’ll tell you how much competition they [payment banks] will be,” he said nonchalantly.
Barbarians at the gate
Banks must learn to compete with dozens of nimble, focused and ruthless fintech and payments startups out to disrupt them. Using data
Banks ignored fintechs, especially payments for long
Wallets, payment banks and digital lenders' data visibility on customers threaten to disintermediate banks
Fintechs firms' cost of acquiring customers can be a fraction of that of banks
While regulation is a moat for banks, it is becoming fintech friendly