Updated: September 6, 2021 11:06:21 am
The fast-growing fintech sector is slowly getting into the space of the traditional banking sector with the latest technology inputs, according to Ketan Doshi, MD, PayPoint India.
Fintech companies are expected to do what banks are currently doing in the coming years, he said. “You will see many fintech companies moving into the normal banking area. The traditional way of banking is going to change,” Doshi told The Indian Express.
Fintech or digital innovations have emerged as a potentially transformative force in the financial markets aiding efficiency improvements, risk reduction and greater financial inclusion, he said.
Doshi sees last mile delivery of financial services as a huge opportunity as till date, most of the financial services were pushed to people who were already included in the financial system. “This also generates revenue at all levels unlike other bleeding segments. We would say that treasure lies at the bottom of the pyramid,” Doshi said. He said PayPoint India is looking at acquiring a couple of companies in the fintech segment and exploring ways to tap external capital.
“We are exploring inorganic acquisition aggressively and port our efficient tech enabled model into this acquired asset very quickly. We see inorganic growth opportunities in the market as some players have expanded without operational efficiency,” Doshi said.
“They are weak and available. It opens huge opportunities within the segment. To fund this opportunity, we may need external capital and are evaluating the appointment of an investment banker. This will be done in the next 45 days,” Doshi said.
PayPoint, a last-mile distribution network of financial services with a digitally connected network of 60,000 plus retail stores offer various banking and financial services like PMJDY accounts, micro-ATM services, wallets (Paypointz), remittances, bill payments, eGold and merchant QR. Started operations in 2008, the company now processes 8 million transactions per month and has acquired and services over 3.3 million bank accounts. “We have seen a 53 CAGR growth for the last 5 years in terms of value of throughput which was Rs 12,000 crore last year. While organically we are growing and operational, we are extremely effective generating positive cash since years,” he said.
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