BharatPe chairman Rajnish Kumar believes that in the future banks will become like fintechs and fintechs like banks, highlighting the pace of changes that India's banking and payments space is going through.
Speaking at Moneycontrol's Startup Conclave on July 7, the former State Bank of India chairman said, "Over some time, banks will become like fintechs and fintechs will become like banks."
Kumar said fintechs are rewriting rules for innovation and have advantages over banks in the payments ecosystem.
"Banks have advantages over fintechs in some spaces but nowadays, customers are likely to use payment system operated by fintech companies," Kumar said.
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.
Other than Kumar, V Vaidyanathan, MD and CEO, IDFC First Bank also said that startups and fintechs are plugging into the banking system to make the whole stack efficient.
"Banks in India are witnessing change and innovation in every stage due to the innovation from startups and fintechs," said Vaidyanathan.
Also read: Fintechs rewriting the rule book, banks will compete and co-exist, says Rajnish Kumar
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