Fastest app first
Regulatory restrictions apart, banks could conceivably end up as back-end suppliers to super-apps that control customer relationships. Banks with insufficient market appeal could pose other problems. The RBI will have to keep the country’s e-shift under close watch
The divide between lenders and technology firms is fast getting blurred, with our online guides offering products that have long been the preserve of banks. Consider Google’s reported tie-up with fintech firm Setu to let users of Google Pay, a payment app, place fixed deposits with Equitas Small Finance Bank (to begin with). An Aadhaar-based fulfilment of know-your-customer norms with the help of a one-time password may be all that app users need to avail of this facility.
Big Tech in fintech may have profound implications. Software trends since the rise of Microsoft suggest that market dominance tends to reside at the consumer interface. Network effects of the internet only boosted the power of front-end engagement. As apps compete to be our digital gateways, those that attract our fingers first have a sharp edge, and American tech firms already have vast user bases in India. Regulatory restrictions apart, banks could conceivably end up as back-end suppliers to super-apps that control customer relationships. Banks with insufficient market appeal could pose other problems. The Reserve Bank of India will have to keep the country’s e-shift under close watch.
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