Fintechs rewriting the rule book, banks will compete and co-exist, says Rajnish Kumar

Identifying the gap and the consumer needs which are innovative will give a big opportunity to fintechs.

Fintech companies are rewriting rules in innovation but banks will co-exist with them, BharatPe chairman Rajnish Kumar said on July 7 at Moneycontrol's Startup Conclave in Bengaluru.

The former State Bank of India (SBI) chairman said that legacy institutions like banks have advantages over fintechs but at the same time, in some spaces, fintechs lead.

"Banks and fintech will compete and co-exist. Fintechs are rewriting rules from the start. Banks and legacy institutions have some advantages compared to fintechs, whereas when it comes to payments, fintechs have an advantage," Kumar said.

Also read: Change is happening in banks with innovation from startups and fintech: IDFC First Bank CEO V Vaidyanathan

Other than this, Kumar also said that in the future banks will become like fintechs and fintechs like banks.

Kumar said: "Over some time, banks will become like fintechs and fintechs will become like banks."

Additonally, Kumar also said that another aspect of growth that fintech can explore is identifying the need for innovation.

"Identifying the gap and the consumer needs which are innovative will give a big opportunity to fintechs," said Kumar.

Also read: Why Rajnish Kumar believes banks will be like fintechs and fintechs like banks?

Additionally, T Rabi Shankar, Deputy Governor, Reserve Bank of India (RBI), said there are several advantages from innovations brought in by fintech companies.

"New innovations brought by fintechs are helping in driving down costs, refocusing products and services and improving customer reach and services," said Shankar.