Therefore, it’s a wake-up call for Indian banking, he said: Wake up, you will see large parts of the traditional financial markets move out.
Asserting that Indian banks have been behind the curve in tapping payments technology,
Kotak Mahindra Bank Managing Director Uday Kotak on Friday said they need to wake up before large parts of the traditional financial markets move out from them. Indian bankers have been short-sighted on the payments business in the last couple of years as they saw no money in payments, Kotak said at Infinity Forum organised by the International Financial Services Centres Authority (IFSCA) and Bloomberg.
As a result, they have allowed the growth of unified payments interface (UPI) payments monopolised by two players, Google Pay and PhonePe which have got 85 percent market share, he said.
Therefore, it’s a wake-up call for Indian banking, he said: Wake up, you will see large parts of the traditional financial markets move out.
Having said that, he said, We have to keep in mind that consumer tech companies have revenue models outside of finance. For instance, the advertising model or the e-commerce model. Banks, by law, under Section 6 of the Banking Regulation Act cannot get into non-financial business as defined.
(PTI)