The outmoded licensing regime in India needs to be brought up to date with digitization trends in the broader economy, writes @andymukherjee70trib.al/BchfEYF
No deposit-taking institution in the world is trusted more by savers and enjoys a bigger cachet with investors than HDFC Bank.
This has made India’s most valuable lender so lethargic that it had to be banned from issuing new credit cards for eight months trib.al/PNtzgBM
Bank licenses are permits to make money out of thin air.
The prospect of sharing the privilege with a new breed of digital rivals will be more effective at keeping HDFC Bank and other traditional financiers on their toes trib.al/PNtzgBM
The Reserve Bank of India should ask why it has to do the market’s job of pushing firms to embrace best-in-class technology.
The country’s licensing policy for financial institutions is past its sell-by date trib.al/PNtzgBM
New technologies are reshaping the financing landscape.
From nothing five years ago, Indians now pay and receive 7.7 trillion rupees ($102 billion) a month via apps running over a shared public utility trib.al/PNtzgBM
Since innovation originated in payments, financiers didn’t pay attention.
Uday Kotak, chairman of Kotak Mahindra Bank, said recently, “Bankers were short-sighted. Their standard response was, ‘Oh, there’s no money in payments.’”
About 20% of online payments over the shared public network are being collected by merchants.
They’re shunning costly credit-card systems, but are keen to use their online sales data as information collateral to get working-capital loans trib.al/PNtzgBM
A licensing regime that has fallen behind technological innovation has caused a regulatory vacuum.
An RBI working group estimates the number of illegal digital lending apps in India at 600 trib.al/PNtzgBM
The outmoded licensing regime in India needs to be brought up to date with digitization trends in the broader economy.
It’ll force traditional players to shed their lethargy, and show a more certain path to profitability to well-capitalized fintech trib.al/PNtzgBM
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Researchers at Harvard Medical School now say the omicron variant, not delta, is likely fueling the current surge in Covid-19 cases in the northeastern U.S. trib.al/O49sJhb
That’s cause for alarm, because researchers still don’t know much about the variant, and it’s unclear how well vaccines will protect people.
Harvard’s labs are optimized for speed but omicron is spreading faster than they can track it trib.al/O49sJhb
“I think we are in the omicron surge,” Bronwyn MacInnis, director of pathogen genomic surveillance at the Broad Institute of MIT and Harvard said.
“There’s no system on the planet that could keep up with the pace of this doubling time” trib.al/O49sJhb
If you’re a smoker who wants to indulge your habit while gazing over the mountains of the South Pacific, you’d do well to move fast.
New Zealand announced plans to become the first nation in the world to ban tobacco trib.al/SI0pMMR
Prohibition won’t happen overnight. New Zealand will raise the legal smoking age each year, so that people born after 2008 will never be allowed to puff.
That will eventually mean that tobacco smoking may start disappearing from one corner of the planet trib.al/eeRy24P
The tobacco ban in New Zealand may be a taste of things to come.
🇳🇱 The Netherlands will ban supermarket sales of tobacco starting in 2024
🇺🇸 One in four Americans supported a total smoking ban in a 2018 survey trib.al/eeRy24P
🚘 The race to build and capture large swathes of the global electric vehicle supply chain is gathering pace.
It won’t be about who comes in first but who can do it best trib.al/6kSXefF
China is well ahead of the U.S. on EV battery supply chains.
While it has developed disparate parts of the supply chain, the U.S. is a long way from being ready to churn out hundreds of thousands of batteries that will power all of the vehicles forecast trib.al/XavnYnY
⚡️ What should manufacturers of batteries and cars commit to? It’s a tough call. Either you ...
A) Go with the best and safest technology to date
B) Wait it out and focus on the future without investing too much in what’s commercially viable today trib.al/XavnYnY
🛍️ The bargain bonanza that is Black Friday has begun. Only there are fewer special offers this year, and those that are being advertised aren’t quite so eye-catching.
You can blame the global supply chain meltdown for the lack of doorbusters trib.al/HI6L0GB
💰 Many Americans are still flush with Covid lockdown savings, while wage gains are also boosting household spending power.
Combine that with missing out on holiday festivities in 2020, and that’s made for buoyant consumer conditions trib.al/z1we2hl
Given the higher costs that retailers are facing — from spiraling freight rates to air-shipping goods from Asia — they had little choice but to cut down on promotions this year in order to protect profit margins trib.al/z1we2hl
Good news: The supply-chain crunch appears to have already peaked in the U.S.
Evidence keeps piling up to suggest that the U.S. is slowly but surely making progress in easing freight congestion and supply shortages bloom.bg/3oIZ4l3
🚢Average ocean freight rates for a 40-ft container have declined for 8 weeks
🚢Spot pricing for the Shanghai-Los Angeles trade route is down about 19% from its September peak
🚢There are fewer containers lingering for more than 9 days at the Port of L.A. bloom.bg/3oIZ4l3
The threat of fines for excessive dwell times at the port seems to have led to a meaningful improvement.
The ports of L.A. and Long Beach have delayed the penalties (which start at $100 a day and rise in $100 increments) until at least later in November bloom.bg/3oIZ4l3