According to Ketan Doshi, MD, PayPoint India, the fast growing fintech sector is slowly advancing into the realm of the traditional banking sector with the latest technology inputs.
Fintech companies are expected to do what banks are currently doing in the years to come, he said. “You will see how many fintech companies move into the normal banking sector. The traditional way of banking will change, ”Doshi told The Indian Express.
Fintech, or digital innovation, has proven to be a potentially transformative force in financial markets, contributing to efficiency gains, risk reduction and greater financial inclusion, he said.
Doshi sees the delivery of financial services on the last mile as a great opportunity, as to date most financial services have been given to people who were already tied into the financial system. “In contrast to other bleeding segments, this also generates sales at all levels. We would say that the treasure is at the bottom of the pyramid, ”said Doshi. He said PayPoint India is considering acquiring some companies in the fintech space and looking for ways to raise outside capital.
“We are aggressively reviewing the inorganic acquisition and very quickly transferring our efficient, technology-enabled model to this acquired asset. We see inorganic growth opportunities in the market as some players have expanded with no operational efficiency, ”said Doshi.
“They are weak and available. It opens up enormous opportunities within the segment. To fund this opportunity, we may need outside capital and are considering appointing an investment banker. This will happen in the next 45 days, ”said Doshi.
PayPoint, a last-mile distribution network of financial services with a digitally connected network of over 60,000 retail stores, offers a variety of banking and financial services such as PMJDY accounts, micro-ATM services, wallets (Paypointz), wire transfers, bill payments, eGold and merchant- QR. The company started operations in 2008, today processes 8 million transactions per month and has acquired and serviced over 3.3 million bank accounts. “We have seen 53 CAGR growth in the value of throughput over the past 5 years, which was Rs 12,000 billion last year. While we are growing organically and operating, we have been extremely effective in generating positive cash flows for years, ”he said.