The outmoded licensing regime in India needs to be brought up to date with digitization trends in the broader economy, writes @andymukherjee70 trib.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 A picture of an HDFC Bank b...
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 A picture of the Reserve Ba...
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.’”

But there is now trib.al/PNtzgBM A picture of Uday Kotak, ch...
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

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Bloomberg Opinion

Bloomberg Opinion Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @bopinion

16 Dec
The change of expert opinion was sudden.

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 Man walks in holiday market...
“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 Tracking Covid-19: 736,191 ...
Read 14 tweets
15 Dec
Mark Zuckerberg has bet the future of his company on the “metaverse” becoming the place where we’ll connect with family and friends.

But what’s it actually like socializing in virtual reality? @parmy found out trib.al/ioKkM1R
@parmy Over two weeks, @parmy mingled with people at an array of virtual locations including a:

🎶Concert
⛪️Church service
🎙Conference
⏲Speed-dating event

Connecting with people in VR is fun and exciting, but it’s also intense, tiring and often awkward
trib.al/hyto7jH selfie of parmy's female av...
@parmy Meta's VR platform Horizon Worlds just opened to adults in the U.S. & Canada. But its precursor, Horizon Venues, was full of kids.

Zuckerberg could face the same social media challenges, like barring kids and policing harassment, in the metaverse, too trib.al/hyto7jH Image
Read 14 tweets
13 Dec
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 A picture of a hand holding...
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
Read 10 tweets
22 Nov
🚘 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 A picture of a blue electric vehicle being charged at a char
⚡️ 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
Read 10 tweets
21 Nov
🛍️ 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 A coin is dropped into a piggy bank in this arranged photogr
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 A picture of a sign that says, "Black Friday is on ever
Read 11 tweets
20 Nov
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 container ship unloading at port of los angeles
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 container ship with evergreen written on the side unloads at
Read 10 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(