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Mint BFSI Summit and Awards Highlights: Fintech are bringing a lot of value through innovation, says NBFID chairman

Mint BFSI Summit and Awards: The Mint BFSI Summit & Awards, will see active participation of industry leaders and independent experts. The BFSI Awards will also recognise efforts of outperformers in these industries

IRDAI Chairman Debasish Panda

Mint BFSI Summit and Awards: The banking, financial services and insurance (BFSI) industry in India is the backbone of the country’s monetary, industrial and economic ecosystems. The arrival of fintech organisations across this grouping has shaken things up, given the fintechs’ digital-native nature, and their speed of execution.

India can arguably be said to be one of the world leaders in fintech, with thousands of fintech players permeating the BFSI industry. They have proliferated all aspects of BFSI, from lending to insurance to mutual funds, and that too with innovative, cost-effective practices, products and business models. Consumers, too, have taken to fintech warmly, using their products and services across platforms and segments, especially in payments and borrowing. Interestingly, it is this very spread of the fintech that has put them in the crosshairs of the regulator. Which is actually not a bad thing, given some fintechs’ propensity to mis-sell and take risky bets under pressure from their investors to increase market share. How are fintechs coping with the pressure, and adapting their systems and processes to stay on the right side of the regulator, yet stay nimble, agile and receptive to market demands?

These burning issues will be taken up in-depth at the Mint BFSI Summit & Awards, with the active participation of industry leaders and independent experts. Mint also introduces the BFSI Awards this year, to recognise the efforts of outperformers in these industries, for which it has created robust data-driven processes for each industry. The outcome of Mint’s processes will be taken to an esteemed jury for selecting the final winners, who will then be felicitated on the night of the Summit.

11 Jan 2024, 08:42 PM IST Mint BFSI Summit and Awards LIVE: Fintechs are bringing a lot of value through innovation, says NBFID chairman

Mint BFSI Summit and Awards LIVE: NBFID Chairman KV Kamath appreciated the role of fintech firms in the Indian economy and said, “As far as #fintechs are concerned, they are bringing a lot of value through innovation." 

11 Jan 2024, 08:12 PM IST Mint BFSI Summit and Awards LIVE: I'm sure that the central banks of the BRICS countries.., says KV Kamath, Chairman NBFID

“I'm sure that the central banks of the BRICS countries are engaging on this and alternate settlement mechanisms, and so on. As we have seen, it is required for the security of our own nation," said KV Kamath, Chairman, NBFID.

11 Jan 2024, 07:46 PM IST Mint BFSI Summit and Awards LIVE: 'I don't think its banking that has the largest governance issue but..,' says CEO of CSB Bank Limited

Mint BFSI Summit and Awards LIVE: I don't think its banking that has the largest governance issue but the point is we cannot afford to have governance issues because we are dealing with public money, said Pralay Mondal MD & CEO, CSB Bank Limited. 

Mondal also highlighted that deposit growth is an issue for the sector and indicated that banks are aggressively growing the assets book, their liability book is not growing enough and hence regulatory council is important.

“The question here is in the last few quarters credit growth has outpaced deposit growth. Private sector banks have 87-88% CD ratio at this point. The truth is some of the banks that are aggressively growing the assets book, their liability book is not growing enough and hence regulatory council is important. You also have to look at the quality of the deposits and funding. Given all this, the deposit growth has to pick up," he said.

11 Jan 2024, 07:23 PM IST Mint BFSI Summit and Awards LIVE: You need to have the presence of a brick and mortar bank to build confidence

Mint BFSI Summit and Awards LIVE: Subramaniakumar, MD & CEO, RBL Bank said that the reality in our environment is that it is needed to have the presence of a “brick and mortar bank in a town to instill confidence till the brand recall happens.

He also said that it is only after building confidence, one can substantiate it with multiple sales teams on the ground.

11 Jan 2024, 06:49 PM IST Mint BFSI Summit and Awards LIVE: NBFCs are a need based institutions, says Ramesh Iyer

Mint BFSI Summit and Awards LIVE: Identifying NBFCs as need based institutions, Ramesh Iyer, Vice-Chairman & Managing Director, Mahindra Finance, said that banks will continue to lend people with aspirations and NBFCs will lend to people with needs.

“For very long NBFCs were built on knowledge. Now genuine data is available, so is proxy data. Customer knowledge has also gone up substantially. The customer is also putting enough effort to bring down your cost of collection. Things have changed over a period of time and costs are coming down," he said.

11 Jan 2024, 06:28 PM IST Mint BFSI Summit and Awards LIVE: Being present in all segments has always helped us grow, says CEO Tata Capital

 Mint BFSI Summit and Awards LIVE: Rajiv Sabharwal, CEO Tata Capital, called being present across all segments as the main advantage for the firm. Sabharwal also said that omnipresence in all segments also helped the firm during Covid pandemic.

"We had a long run of good times post the global finance crisis, but during Covid, the retail business got impacted. That time corporate business did well. When things opened up, growth started to come back. Being present in all segments gives us an advantage of what the market needs at that point of time and focus on suitable strategies. We want to be present in all segments, especially in the retail segment" said Rajiv Sabharwal.

11 Jan 2024, 06:16 PM IST Mint BFSI Summit and Awards LIVE: Key things that differentiate from NBFCs from banks 

Mint BFSI Summit and Awards LIVE: Explaining the difference between NBFCs and banks, Sonali Kulkarni, MD and Lead, Financial Services, Accenture in India, said that the segments served by NBFCs require deep domain expertise, which has been built over the years. She believes the technical finessse are a major differentiator from the banks. 

“Their (NBFCs) ability to operate at an efficient cost structure, and their understanding of segments in terms of risk, their ability to collect from the last mile segment has been a big differentiator from banks. These capabilities will allow them to grow at a faster rate," she added.

11 Jan 2024, 06:11 PM IST Mint BFSI Summit and Awards LIVE: As an NBFC our product is money, says Ramesh Iyer, vice-chairman Mahindra Finance

Mint BFSI Summit and Awards LIVE: Ramesh Iyer, vice-chairman Mahindra Finance believes that the growing needs of customers serves as an opportunity for NBFCS. 

“Customers have come forward and asked for more products. They have been fulfilling that need from the unorganized sector. Now they are realising they can get the same from the organized sector. It's an opportunity the consumer has offered us. Its an evolving opportunity the consumer has offered us. It will continue to evolve this way. As an NBFC our product is money. We have to sell money to consumers whose needs are to be met. Thats the way we see ourselves going," he said.

11 Jan 2024, 05:49 PM IST Mint BFSI Summit and Awards LIVE: Cashless claimes in health are still low in India, says Anuj Tyagi Joint MD, HDFC Ergo General Insurance

Mint BFSI Summit and Awards LIVE: Anuj Tyagi, Joint MD, HDFC Ergo General Insurance said that cashless claims in health insurance sector are still low in India because customers are not coming forward.

“We are managing their cash flows and giving convenience but people are not taking cashless," he added.

11 Jan 2024, 05:22 PM IST Mint BFSI Summit and Awards LIVE: It takes min 3 years to break-even in MFD business

Mint BFSI Summit and Awards LIVE: The cost of acquisition in retail is not what the MFD should look at. There should be healthy mix of HNIs and retail. It takes minimum 3 years to break-even in MFD business, said Amit Bivalkar, Founder & Director, Sapient Finserv

11 Jan 2024, 05:00 PM IST Mint BFSI Summit and Awards LIVE: Share of fintech will be 80% in MF equity AUM by 2030, says Vivek Banka

Mint BFSI Summit and Awards LIVE: On being asked about what will be share of fintech firms in MF equity AUM, Vivek Banka of Goalteller said that he looks the percentage to increase to 80%.

11 Jan 2024, 04:19 PM IST Mint BFSI Summit and Awards LIVE: Instant gratification over delayed gratification is a problem in MF distribution

Mint BFSI Summit and Awards LIVE: Focus is not there in mutual fund distribution. We are more worried about how fintech will upset the applecart. Instant gratification over delayed gratification is a problem in MF distribution, said Amit Bivalkar, Founder & Director, Sapient Finserv

11 Jan 2024, 04:08 PM IST Mint BFSI Summit and Awards LIVE: 'Our objective is not just to use our investor base to sell, but..' says Zerodha AMC CEO

Mint BFSI Summit and Awards LIVE: Zerodha AMC CEO Vishal Jain, CEO, said that the objectives of the firm is not just to use its investor base to sell, but to ensure that more and more people invest in their products.

11 Jan 2024, 03:34 PM IST Mint BFSI Summit and Awards LIVE: IBC cannot work for airlines

Mint BFSI Summit and Awards LIVE: Highlighting the requirement of large amount of capital for airlin companies to come, Managing Director and Chief Executive Officer, Edelweiss ARC, RK Bansal, said that companies like Go Air, Air India will require a lot of money to run their business.

“If you don't have the assets, and if you are depending on brand and skills (it is hard). Unlike Uber or Ola who had deep pocketed investors, airlines cannot survive taking loans and not making money for so long. So my take is that IBC cannot work for airlines," he said at BFSI Summit.

11 Jan 2024, 03:09 PM IST  Mint BFSI Summit and Awards LIVE: Why IBC recovery has slowed down

Mint BFSI Summit and Awards LIVE: Explaining the delay in IBC recovery, Nikhil Shah, Managing Director, Alvarez & Marsal, said that the percentage recovery of the claim is driven by the quality of the asset and the cash flow that the asset can generate. He also added that there is no (NPA) supply that is being created as there is anaemic lending in the corporate sector.

11 Jan 2024, 02:58 PM IST Mint BFSI Summit and Awards LIVE: IBC cases left in the system are ‘difficult to resolve’

Mint BFSI Summit and Awards LIVE: RK Bansal, Managing Director & Chief Executive Officer, Edelweiss ARC, said that IBC cases left in the system now are 'difficult to resolve' or there is not much value left. He mentioned this as the main reason behind persistent delays in resolution of cases.

11 Jan 2024, 02:55 PM IST Mint BFSI Summit and Awards LIVE: Delay in cases settlement is leading to out of court settlements 

The timeframe taken to resolve cases has doubled; there is concern from the lenders on whether this process is worth it. This is leading to out of court settlements, said Nikhil Shah, MD, Alvarez & Marsal.

11 Jan 2024, 02:50 PM IST Mint BFSI Summit and Awards LIVE: First three years of IBC surpassed everyone's best expectations 

Mint BFSI Summit and Awards LIVE: The first 3 years of IBC surpassed everyone's best expectations, said Bahram Vakil, one of the founding partners of AZB & Partners. He also said that post COVID, the industry has not recovered (with) that speed, but there has been a behavioral change on credit.

11 Jan 2024, 02:26 PM IST Mint BFSI Summit and Awards LIVE: Pleased with our small finance markets, says Unity Small Finance Bank CEOT

Appreciating the situation of India's small finance markets, MD and CEO of Unity Small Finance Bank Inderjit Camotra said that 75% of his bank's lending is conforming to small finance. He also said that Unity Small Finance Bank's NPA is less than 1%.

11 Jan 2024, 02:00 PM IST Mint BFSI Summit and Awards LIVE: Recipe for Success?

The best thing for India is to have its banking and fintech integrated. As India progresses to become the third largest economy, simple banking won't do it. Simple fintech won't do it. But a combination of both is India's recipe for success, feels Inderjit Camotra, MD & CEO, Unity Small Finance Bank

We are very pleased with our small finance markets. 75% of our lending is conforming to small finance and that's not simply because we have been told that's the way it should be. That's very sensible and you have better margins. Our NPA is less than 1%.

11 Jan 2024, 01:54 PM IST Mint BFSI Summit and Awards LIVE: Inderjit Camotra, MD & CEO, Unity Small Finance Bank on merger with Fincare SFB

There's great synergy in the geographies they serve. One is very focused on MFI. The other started as a vehicle financier. I think there is great synergy and the combined entity will come out very strong.

11 Jan 2024, 01:48 PM IST Mint BFSI Summit and Awards LIVE: Differentiated bank licences: Has the experiment worked?

Small finance banks today have 25 million accounts. So we have touched the lives of 100 million Indians. That means, SFBs have under 7 years, touched the lives of 7% of India's population, said Inderjit Camotra, MD & CEO, Unity Small Finance Bank

11 Jan 2024, 01:44 PM IST Mint BFSI Summit and Awards LIVE: Differentiated bank licences: Has the experiment worked?

If, as a payments bank, you look at only UPI-based solutions, the path to profitability could be difficult. A lot of payment companies are now looking at how we use the data of the millions of customers who come to us every month, said Rishi Gupta, MD & CEO of FINO Payments Bank. He added that if you just focus on products that are at zero MDR right now, then there cannot be profitability.

11 Jan 2024, 01:20 PM IST Mint BFSI Summit and Awards LIVE: Fintech's Path to the IPO: Distant or Realistic?

Fintech companies are today more ready than they ever were a few years back to list on bourses, says Nirav Shah, managing director, Equirus Capital. They have realised that the business has to be not just high growth but sustainable and profitable before tapping the IPO market, Shah said.

The companies should work with the regulator to build trust and have transparency that needs to be maintained if they have IPO ambitions. The VC investors are likely to pay 15-year forward valuation but have a 4-5 year investment horizon whereas a public market investor might pay only a one-year forward valuation but are likely to stay with you longer, Shah said.

11 Jan 2024, 01:15 PM IST Mint BFSI Summit and Awards LIVE: On challenges for fintechs going public

Richa Choudhary, partner- capital markets, Trilegal said, "Although the movement has been slow in the fintech IPO area, it is likely to pick up pace as now the market is prepared having learned from Paytm IPO, which was the first fintech IPO so to say."

11 Jan 2024, 01:08 PM IST Mint BFSI Summit and Awards LIVE: Fintech's Path to the IPO: Distant or Realistic?

Kunal Varna, CEO, Freo, said, "Anyone who was predicating their business models around regulatory arbitrage had to go back to the drawing board to realign the business. But the good part is that most players were not doing this."

11 Jan 2024, 01:02 PM IST Mint BFSI Summit and Awards LIVE: Debasish Panda, Chairperson, IRDAI on insurance industry

The insurance industry is categorised for using jargon. We are looking into simplifying the policy document. A report is expected soon.

We are considering a sunset clause of three years on regulations for policy dynamism. From 100 odd regulations, we are hoping to have 15-odd regulations to streamline industry growth.

11 Jan 2024, 12:59 PM IST Mint BFSI Summit and Awards LIVE: Debasish Panda, Chairperson, IRDAI on Bima Manthan

We engage with CEOs of insurance companies on a quarterly basis to understand challenges. It is called Bima Manthan. Feedback received from the industry made us start a customer information sheet which simplifies policy details.

11 Jan 2024, 12:55 PM IST Mint BFSI Summit and Awards LIVE: Debasish Panda, Chairperson, IRDAI on Bima Trinity

Unique Bima Trinity is being conceptualized. Bima Vistaar Bima Vahak and Bima Sugam for seamless delivery of insurance products.

Bima Sugam, a regulatory electronic marketplace will remove information asymmetry and democratise it.

The support that we have received from state government on state-level insurance is tremendous. It is key to universal insurance coverage before 2047.

11 Jan 2024, 12:50 PM IST Mint BFSI Summit and Awards LIVE: Debasish Panda, Chairperson, IRDAI on industry evaluation

The insurance industry has matured. The evolving landscape demands more freedom which needs regulatory overhaul. We undertook a 360-degree evaluation. It was found there are hindrances to the industry’s growth even in launching a new product.

A revised framework was put up for more consultants and a new landscape was set in to promote competition and innovation. Regulatory processes have been simplified. Use and file is now possible.

We have InsureTech team within IRDAI. Insurers are being nudged to adopt AA framework. 27 of them have registered.

11 Jan 2024, 12:44 PM IST Mint BFSI Summit and Awards LIVE: Debasish Panda, Chairperson, IRDAI on the future

The future will be shaped by young Millennials and Gen Z. Do-it-yourself or DIY approach is needed for them. Similarly, senior citizens also need attention. The insurance industry needs to look into it.

The next decade is paramount for the insurance industry. We need to build an ecosystem where premiums are no longer one size fits all but individual risk profiling.

Cashless claims have become a norm. Travel insurance, has been possible in foreign countries also.

11 Jan 2024, 12:38 PM IST Mint BFSI Summit and Awards LIVE: Debasish Panda, Chairperson, IRDAI on India's insurance sector

India’s insurance sector ranks 10th and is expected to reach sixth soon.

The insurance industry has the aggregate 16 lakh crore assets under management. 5 new insurance companies have entered the market.

11 Jan 2024, 12:31 PM IST Mint BFSI Summit and Awards LIVE: Debasish Panda, Chairperson, IRDAI on industry game-changers

The biggest game-changer for the BFSI industry has been the JAM trinity. The Pradhan Mantri Jan Dhan Yojana, Aadhaar, and mobile connectivity have taken financial access to the last mile. Pradhan Mantri Mudra Yojana added a further fillip.

In Insurance, Pradhan Mantri Jeevan Jyoti Beema Yojana and Pradhan Mantri Surakha Yojana are doing a similar job.

Pradhan Mantri Jan Aarogya Yojana from the health segment is complimenting the Pradhan Mantri Aayushman Bharat Yojana. For unorganised sector, the Atal Pension Yojana is going on.

11 Jan 2024, 12:24 PM IST Mint BFSI Summit and Awards LIVE: Insurance's innovation agenda

Debasish Panda, Chairperson, Insurance Regulatory and Development Authority of India (IRDAI) speaking on 'Insurance's innovation agenda'

What is innovation? It is nothing but a powerful idea that changes the entire ecosystem. For instance, what UPI has done to the payments infrastructure.

11 Jan 2024, 12:22 PM IST Mint BFSI Summit and Awards LIVE: Kamlesh Varshney, Whole Time Member, SEBI on TER circular

The MF advisory committee has given us suggestions. Those suggestions are being tested out with data. Once it is done, we shall put it up for public consultation.

11 Jan 2024, 12:20 PM IST Mint BFSI Summit and Awards LIVE: Kamlesh Varshney, Whole Time Member, SEBI on the Indian capital markets

Can we design a product with less regulatory oversight for savvy investors? We will come out with a consultation paper on the same. Difficult to comment on the timing of it.

11 Jan 2024, 12:19 PM IST Mint BFSI Summit and Awards LIVE: Kamlesh Varshney, Whole Time Member, SEBI on SEBI-Registered Investment Advisors

The 1300-RIA figure is quite low. I agree that most people giving advice should be in the advisory framework. If changes are needed in regulations, we need to do it. We are examining it. We have received feedback from the industry. We are waiting for the report of the working group committee. We are in touch with Google, YouTube, and others that if somebody violates the securities law, the content must be taken down.

We are also examining the issue of regulated entities making payments to finfluencers.

11 Jan 2024, 12:16 PM IST Mint BFSI Summit and Awards LIVE: Kamlesh Varshney, Whole Time Member, SEBI on naked short-selling

There is nothing wrong with short-selling. Sebi has had a view that it should not be banned. It helps in price discovery. Our submission to the Supreme Court was that it should not be banned but regulated.

This is a reiteration of our 2009 circular. Nothing has changed in our position. No country will allow you to put your hands up on the settlement day. It is acceptable everywhere that your positions should not be naked when settling trades.

11 Jan 2024, 12:13 PM IST Mint BFSI Summit and Awards LIVE: Kamlesh Varshney, Whole Time Member, SEBI on cryptos

Just because the US has done it doesn’t mean we also do it. The eventual decision has to come from the ministry.

11 Jan 2024, 12:09 PM IST Mint BFSI Summit and Awards LIVE: Kamlesh Varshney, Whole Time Member, SEBI on finfluencers

Sebi working group committee is analysing the finfluencer issue. Our first task is to have them under regulatory net so that we control wrongdoings. We are taking inputs from the industry.

India is aiming to be a developed country. We need to improvise ourselves to be even better. We need to keep in mind the speed of the change so that the industry absorbs it well.

11 Jan 2024, 12:03 PM IST Mint BFSI Summit and Awards LIVE: Kamlesh Varshney, Whole Time Member, SEBI on misuse of money

There have been occasions where we change our regulations based on the consultations received from the industry. We ensure that public is taken on board before we take a policy call.

Misuse of public money as happened in Karvy is a big issue. We saw discrepancy and adjudication proceedings happened. Policy changes wer introduced by the Sebi. We protected investors. Through public consultations, we handled the public misuse of money issue quite well.

11 Jan 2024, 11:54 AM IST Mint BFSI Summit and Awards LIVE: Kamlesh Varshney, Whole Time Member, SEBI on the Indian capital markets

One question all regulators face is -- how much should I regulate? Regulating too much means industry suffers and ease of regulations means investors suffer. This poses a challenge on regulators. If we try to draw a venn diagram –investor protection, market development and market regulations, you will notice, they overlap. There is a space where all three can intersect.

11 Jan 2024, 11:43 AM IST Mint BFSI Summit and Awards LIVE: RBI Governor Shaktikanta Das on CBDC

We will be expanding the scope of wholesale CBDC. We are looking at programmable retail CBDC and are trying to understand whether CBDC can be programmed in such a manner where the end use is clearly defined by the sender.

11 Jan 2024, 11:39 AM IST Mint BFSI Summit and Awards LIVE: Shaktikanta Das on UPI as a leader and public infrastructure

I would not look at UPi as a monopoly. The success of UPI in a large measure also owes a lot to the private sector payment players. The private sector companies have had a major role. UPI is perhaps the best in the world and should become a world leader

11 Jan 2024, 11:36 AM IST Mint BFSI Summit and Awards LIVE: Shaktikanta Das on digital lending guidelines

The digital lending guidelines have been well accepted. The Fintech sector is growing and will grow but it needs to grow sustainability and that is our emphasis.

11 Jan 2024, 11:36 AM IST Mint BFSI Summit and Awards LIVE: Shaktikanta Das on cryptocurrency

RBI's position on crypto remains unchanged. Traveling down that path will create huge risks. I don't think the world or emerging markets can take a crypto mania like the Tulip mania.

11 Jan 2024, 11:33 AM IST Mint BFSI Summit and Awards LIVE: Shaktikanta Das on illegal lending apps

We have furnished a list to the government. There is active engagement between RBI, govt and the concerned ministries for appropriate measures against these apps.

11 Jan 2024, 11:23 AM IST Mint BFSI Summit and Awards LIVE: Banks should look for potential crisis, says RBI Governor Shaktikanta Das

We do not wait for the house to catch fire and then act. Our approach as coach or referee is to say: this is an area you can take a look. We are currently looking at the model-based lending. The robustness of models is something for bank and NBFC managements and board and for audit committees to see. That is an area we are now closely studying. Managers and boards should look at identifying risks in their model-based lending framework.

11 Jan 2024, 11:21 AM IST Mint BFSI Summit and Awards LIVE: Keynote Address by Governor Shri Shaktikanta Das

We are working tirelessly towards further strengthening India's banking system and the overall financial system. At the moment the Indian banking system remains resilient and robust. The NPA numbers are within reasonable limits, they have not really steeply or significantly gone up. What came to our notice were two or three points. One, as I mentioned in my address, there was a kind of exuberance that we clearly saw was building up.

11 Jan 2024, 11:18 AM IST Mint BFSI Summit and Awards LIVE: Keynote Address by Governor Shri Shaktikanta Das

Unification of regulatory and supervisory arms of the RBI; regulatory efficiency and effective oversight are undertaken. We are working tirelessly towards further strengthening India's banking system and the overall financial system. At the moment the Indian banking system remains resilient and robust. I encourage bank CEOs to speak frankly on issues and without awe.

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