A collaborative model between banks and fintech companies is a must for overall growth of the financial sector, said Amitabh Chaudhry, chief executive officer and managing director, Axis Bank.
"Fintechs do not have the business reach like banks and banks do not have the tech facility like fintechs. Hence, collaboration is the model both institutions need to work on," Chaudhry said at the Global Fintech Festival in Mumbai on September 6.
Additionally, collaboration is coming in rapidly as both institutions understand the new developments in the industry, Chaudhry said.
From the regulations perspective, Chaudhry highlighted that the Reserve Bank India (RBI), has been at the forefront of innovation.
"Fintech model is expected to evolve and regulations from the regulator will be a facilitator and not a hurdle maker," Chaudhry said.
Use of AI
Chaudhry also highlighted that the business model of both and fintech companies is evolving with the trends in the sector.
"There are fintech and other companies working on using AI to develop models around data. This can help banks and fintech and startups," Chaudhry said.
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