Thursday, May 19, 2022

Daily News: HDFC bank to launch credit cards with Paytm, India to host the World’s largest Virtual Fintech Fest & more

1. HDFC bank to launch credit cards with Paytm

After the RBI struck HDFC Bank last year with a ban that barred it from issuing credit cards because of recurring glitches to its backend platform, it marks the first aggressive alliance struck by the bank.

As a result of the ban, HDFC lost its market shares to ICICI Bank and SBI. The credit card will be powered by Visa and will be launched in October 2021.

Read more about it here.

2. Banks themselves will drive bad bank, says FM

FM Nirmala Sitharaman is confident that the National Asset Reconstruction Company Ltd (NARCL) will work as the whole process is driven by banks themselves.

Last week only the finance minister announced Rs 30,600 crore in government guarantee that will back the securities issued by NARCL. It will acquire bad loans worth Rs 2 lakh crore.

Read more about it here.

3. India will host the World’s largest Virtual Fintech Fest from 28th to 30th September 2021.

Over 25,000 delegates, from over 115 countries, will participate at the world’s largest virtual fintech summit – Global FinTech Fest (GFF) on 28th -30th September that will discuss how globally the economies are being reshaped by fintech companies’ products adoption.

India is gradually emerging as the world’s top fintech hub, with the sector clocking the highest VC funding in the last year in the APAC region. The current year has seen over 16 unicorns in India where 1 in 4 unicorns were from the fintech domain.

Read more about it here.

4. Banks are no longer the monopoly financiers of the Indian economy

Banks are no more the primary financiers of the economy as capital markets and Fintech firms are becoming more accessible and easy to avail of loans from.

In Financial Year 2021, lending by incremental banks shrank by 1.6% while non-banking sources grew by 30%. Thus bank credit flow from April to August has been negative. Banks only had a 34% share in the flow of funds to the economy in FY 21.

Read more about it here.

5. Fintech Startup Fyp rolls out its Pocket Money App and India’s First Holographic Card for teens

Gurgaon based fintech startup Fyp recently launched a unique payments app along with a prepaid card for teenagers, in association with Yes Bank and Visa.

The aim of this app is to help teenagers learn financial management and concepts at an early age that will give them exposure to digital payments and banking. The user interface is simple so teenagers and parents can complete their onboarding journey within 60 seconds with the help of Aadhaar cards for KYC.

Read more about it here.

Interested to know more about Card and POS machines Digital Payments, you can check out our course here.

6. Golden opportunity for Fintech to serve MSMEs.

With India crossing the threshold figure of Rs 4 lakhs in digital payments, a testament to the power of the private sector in building innovation is guiding the future of FinTech now.

The rise of FinTech to help the MSMEs should be treated as a priority. It will give rise to employment, exports, and the rural economy. Increased digitalisation solves most problems of MSMEs like delayed payments and inaccessible and expensive credit.

Read more about it here.

7. Salesforce invests in Razorpay

Razorpay was valued at Rs 3 billion in a financing round in April 2021. Now, Salesforce has also made a strategic investment from the venture arm. It will help the company further strengthen its presence in the business banking space.

The size of the investment has not been disclosed yet. However, Razorpay mentioned that the deal will make an impactful contribution to the industry and drive adoption and financial growth for underserved small businesses in the next twelve months.

Read more about it here.

8. The era of Cross border payment

With the Monetary Authority of Singapore and Reserve Bank of India announced plans to link Singapore’s PayNow to India’s United Payment Interface by July 2022, a new era of Cross border payment is visible now.

This connectivity is a major milestone in the development of next-generation infrastructure for cross border payment between the two countries and is even linked to G20’s financial inclusion priorities.

Read more about it here.

9. New Mutual Funds companies means more innovation

With the stock market indices setting record highs, valuations stretching and investing, a new set of technology-focused mutual funds is now being tested as well. People will now choose to invest with financial services players who have almost no track record in this field.

Around 7-8 companies have lined up plans to launch Mutual Funds schemes. The market already has around 1500 schemes across debt, equity, hybrid, ETFs, and ELSS segments from 45 Asset Management Companies.

Read more about it here.

10. Who are the biggest beneficiaries of India’s digitisation Covid drive?

The covid pandemic has proved to be a tipping point for digitalisation and broader penetration of finance. Companies like Zerodha, Groww, Upstox, Angel One, and 5paisa have taken away more than half of the industry’s active client base. Their market share is 53% total.

They offer simplicity and convenience thus even people from Tier 2 and 3 cities, who are first time investors have started investing via these platforms.

Read more about it here.

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