Financial services startup Navi’s founder Sachin Bansal has placed the regulator at the centre of the fintech ecosystem, urging players to prioritise compliance, adding that customers, investors and employees come after regulation in the business.
Flipkart founder Bansal’s comments, made on April 4 at the Startup Mahakumbh in Delhi, come after his financial services company Navi Finserv was briefly banned by the Reserve Bank of India (RBI) late last year following complaints of usurious lending.
“Regulations are changing fast in fintech, especially over the last couple of years. Even after you get punched in the face in the boxing ring, you get up and get going. New things are coming up fast,” Bansal said, adding that fintechs should prioritise regulations even if it is detrimental to the interests of its consumers.
In the past, Bansal has had several run-ins with the Commerce Ministry and the Enforcement Directorate regarding Flipkart’s foreign shareholding as well as predatory pricing.
However, he was quick to add that there are huge opportunities. “If you don't mind the pain, it is very rewarding, solving for billions. In startup, changes come fast but in fintech, even faster,” Sachin Bansal said.
Alok Bansal, co-founder and vice chairman of PB Fintech added that startups have to see regulator and government like another CXO on the table. “They can be tough and unpredictable. If you are not ready, it is going to be tough to manage. Thankfully, we were ready,” he said at the startup event.
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