Why America could miss out big time on India’s fintech revolution

[uttermost]

8 minutes ago, Piracy Raja said:

aa inka emti uncle 

stock market 1000k ki poynaaka ammesthadanta. taravatha crash ayyi janalu sachina aathcare antunnadu.  

[Piracy Raja]

1 minute ago, uttermost said:

stock market 1000k ki poynaaka ammesthadanta. taravatha crash ayyi janalu sachina aathcare antunnadu.  

@Android_Halwa cheppedhi antha sollu... anduke halwa ni sollu uncle anedhi 

[princeofheaven]

9 minutes ago, uttermost said:

lol. em chepthunnav ayya.

microfinancing is expensive. capital markets are a fraction of india's gdp, funds - they are almost non existent in india, fintech okay some flashy new startups.

how will these replace traditional banking in India, which even at its best reaches only about 50% of the population.

sure there's a lot of money to be made in these, but not by destroying the core banking system. and fixed deposits.

are you following SuSu swamy on twitter by any chance? That guy is stuck in the 70s economy, and has nothing to offer the modern economy.

slowly making inroads i think it will fill the banking gap now in india

[uttermost]

2 minutes ago, Piracy Raja said:

@Android_Halwa cheppedhi antha sollu... anduke halwa ni sollu uncle anedhi 

wrong name

ee db lo sollu cheppani vaadu okkadu ledu, including me.  

Halwa deserves a better name.

[uttermost]

1 minute ago, princeofheaven said:

slowly making inroads i think it will fill the banking gap now in india

It means its going to make credit expensive for people who need it the most. its not ideal.

anyway I'm digressing from the topic. Lets have it some other time.

[Batman_fan]

How about something similar to sofi or prodigy finance in India?

[Piracy Raja]

4 minutes ago, uttermost said:

wrong name

ee db lo sollu cheppani vaadu okkadu ledu, including me.  

Halwa deserves a better name.

halwa cheppa dantlo 99.99% sollu ee kada anduke aa name 

[Android_Halwa]

13 minutes ago, uttermost said:

lol. em chepthunnav ayya.

microfinancing is expensive. capital markets are a fraction of india's gdp, funds - they are almost non existent in india, fintech okay some flashy new startups.

how will these replace traditional banking in India, which even at its best reaches only about 50% of the population.

sure there's a lot of money to be made in these, but not by destroying the core banking system. and fixed deposits.

are you following SuSu swamy on twitter by any chance? That guy is stuck in the 70s economy, and has nothing to offer the modern economy.

Naturally micro financing is expensive as the money distributed is small and risk very high...The best alternative to regular banking facility. There is huge unorganized network of micro financing in India, may be worth few billion dollars and once this market gets organised properly, it may control few billion dollar cash loans which is huge in country like India...Like network of credit unions in USA.

Capital Markets are barely a fraction of India's GDP...because most of the money dont flow into the markets directly. Gold,Land and FD's form majority of the investments but investing in the capital markets through funds and shares is still low which means there is room for ample growth and yeah, companies seem to be meeting their capital needs from local markets than to depending on London,New York Or Hong Kong these days....yeah, ample growth and bright future for capital markets..

Traditional banking..! Do you think banking in India is the same as it is in 1990's and now ? Its changing and banks are not interested in opening more branches and do business anymore...from direct consumer to business, banking changing from business to business models...

[Android_Halwa]

Traditional banking system will not be able to handle the needs of 1.2 billion Indians anymore..Its over burdened and short staff supply. 

Banks are now more and more utilizing ATM networks and shared services to cut down their operation expenses. People walking into the bank is now a burden and banks are trying what ever they can to stop you from coming to the bank and instead offering alternative solutions. 

[vankarodu]

okokkadi fichikuntla posts 

[uttermost]

4 minutes ago, Batman_fan said:

How about something similar to sofi or prodigy finance in India?

I can't see how you can beat rates offered by traditional banks in india. can you find a way to take Japanese/US money as debt, and offer loans at cheaper rates and pocket a huge margin?

first, those banks will offer money for equity, and not debt. There's a reason why India's interest rates are that high. Its not because the debtors can afford it, but because its the only way the banks can afford it.

by simply rotating money for cheaper rates, you'll most likely take only 'safe' clients, who'll already be served by the banking system.

anyway, do your best. there's plenty of opportunity in the finance sector in india. Just not in lending, I think. I may be wrong.

[princeofheaven]

3 minutes ago, uttermost said:

I can't see how you can beat rates offered by traditional banks in india. can you find a way to take Japanese/US money as debt, and offer loans at cheaper rates and pocket a huge margin?

first, those banks will offer money for equity, and not debt. There's a reason why India's interest rates are that high. Its not because the debtors can afford it, but because its the only way the banks can afford it.

by simply rotating money for cheaper rates, you'll most likely take only 'safe' clients, who'll already be served by the banking system.

anyway, do your best. there's plenty of opportunity in the finance sector in india. Just not in lending, I think. I may be wrong.

many banks like ICICI use convertible debentures to raise US money and lend them for a high margin back in India

[uttermost]

9 minutes ago, Android_Halwa said:

Naturally micro financing is expensive as the money distributed is small and risk very high...The best alternative to regular banking facility. There is huge unorganized network of micro financing in India, may be worth few billion dollars and once this market gets organised properly, it may control few billion dollar cash loans which is huge in country like India...Like network of credit unions in USA.

Capital Markets are barely a fraction of India's GDP...because most of the money dont flow into the markets directly. Gold,Land and FD's form majority of the investments but investing in the capital markets through funds and shares is still low which means there is room for ample growth and yeah, companies seem to be meeting their capital needs from local markets than to depending on London,New York Or Hong Kong these days....yeah, ample growth and bright future for capital markets..

Traditional banking..! Do you think banking in India is the same as it is in 1990's and now ? Its changing and banks are not interested in opening more branches and do business anymore...from direct consumer to business, banking changing from business to business models...

which are these 'companies' that meet their capital needs from local markets? Only the big companies that default on their loans. almost all SMEs are close to be being destroyed. credit growth is the lowest it has been in two decades.

are you seriously comparing credit unions with microfinance companies which are mostly operated as mafia in India? I think you should compare them with similar cooperative banks in india, not microfinance institutions.

anyway everything you said still doesn't equate to "decrease interest rates" and "promote debt securitization" (which is what it means). It'll create US style bubble, and Indian govt expressly doesn't want to be involved in such shenanigans.

 

[uttermost]

4 minutes ago, princeofheaven said:

many banks like ICICI use convertible debentures to raise US money and lend them for a high margin back in India

I was talking of finance startups, which won't be allowed to do it. That's why its impossible to compete with ICICI or state owned banks when it comes to lending.

[princeofheaven]

4 minutes ago, uttermost said:

I was talking of finance startups, which won't be allowed to do it. That's why its impossible to compete with ICICI or state owned banks when it comes to lending.

didnt know that