ConcurrentThinker
How safe is it to work in a fintech when RBI/govt goes on banning spree
21mo ago
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Curated from across
Depends on the areas:
Most lending apps borrow money from banks/NBFC's to lend forward, this is via securitization or Co-lending or NCDs. This is where RBI can stop the source of funding
High likelihood of drastically changing biz model or even shutting shop. Everyone will eventually come under the regulated ambit and RBI is not happy to hand licences to everyone. In any case regulated business takes out the only differentiator in most cases - extreme ease of transacting/no kyc/no CIC reporting. Flimsy things to build businesses on.
Exactly. If everyone looks the same and only differentiator is the UI/UX then that's a bad way or idea to base a business on. Doesn't bade well for the startups in the business.
Can't do much when RBI and SEBI be going around with a hammer. Not to mention fintechs under a lot of scrutiny these days.
The primary reason for RBI to gun fintechs is due to lack of compliance in these fintech. No internal audits, no supervision - everything is business driven. Fintechs who have partnered with strong Indian banks have flourished. Any bank or fintech working within grey area of RBI policies are bound to get snapped.
No fintech is safe until regulated and the minute they get big they will be regulated. So create a biz model assuming the constraints of regulation which is a hell of a lot tougher. Only a patient long term player can play the game now. Days of hypergrowth are over.
Not safe at all
Very Risky
PAYTM Payments Bank essentially asked to shut shop.
Afaik here are the few implications
That stock is about to crash so fucking hard. Thank god i got out. The crappiest IPO of this decade.
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