Reality Of Banks, Credit Cards, Loans & Business Finance In India - Wegofin | FO 272 Raj Shamani

okay tell me top two traditional Banks. and top two modern Banks from a Legacy. Bank Union Bank of India State Bank of. India Punjab National Bank tell me a. modern bank which one do you like HDFC. why different banks give you different. kind of credit limits there are three. factors Banks risk taking ability their. risk exposure and number three their way. of profiling there's a economic Time. study bank account frequently change and. when they were. asked 60% of the people were not happy.

by the products which bank sold them. this is you know inbuilt in our culture. if you see in the last couple of years. everybody. will all those things this Clarity is. missing in an industry do you. think. and and stand.

73.

[Music]. banking related. problems software company apps.

with the help of AI. or. entrepreneur. ceing life.

experience enjo. the pru Kumar welcome on figuring out s. PR thank you okay tell me traditional. Banks or modern Banks differences. great traditional Banks missing.

points modern Banks and modern fintech. apps just just make a comparison I want. to make it proper traditional versus you. can call it as traditional Legacy Banks. so traditional and Legacy Banks they are. driven by. Legacy driven by Legacy. systems they were all framed way back. they were not meant.

[Music]. Dev you end up having lot of chaos these. processes and the. products in fact now you see when they. are changing they are know trying to for. example SBI is one big. bank they have youo app one of the know. Flagship app Flagship app and they have. done a wonderful in terms of growth in. the product as well it's it's in a well. accepted product so as a process if you. see.

they don't have that new age processes. process they not built for the new. age give me an. example now I'll tell you about the new. age Banks see new age banks are able to. give products in terms of both product. and service see there's a very thin L. between product and service come to expl. I'll explain you know for example if. you're a small bank or small you know. business you need a API to know do.

transfer. transf it's very simple not that. complex and there is no much risk. involved in it see there is a certain. you know element of risk that has to be. there and we have to cover that but you. needed a small AP to fund transfer you. get it very easily you can incorporate. or integrate with your system very. easily and you can start using it in a. limited time frame Legacy Bank you know. they have a challenge to give so there.

will be a lot of going through you know. you have to understand they have to. understand and you end. up. okay they have institutional challenges. any product now I'll talk about. individual for example. indidual as. indidual you need a credit card you need. a locker uh and probably you might need. one more account for your family member. h so and personal loans personal loan.

correct so loan is one thing because. again that's a different segment all put. together lending when we talk about but. other than lending. products he's kind of hesitant to give. you the product because he has not done. your profiling well or he think he has. done a profiling wrong. toal he only sees you as an IND at that.

account that Branch level that. particular has to do profiling across. you as a individual so then he might. recommend he can recommend a right. product to you which will be useful to. you now coming to Modern Bank what they. do they are one step ahead they're able. to understand you as a Persona they're. creating a persona for you like what all. you do what all you have and what might.

be best for you so they recommend the. product and you know the ease is there. there's a bit of ease and you know they. have built technology they you know. invested they invested in technology and. they think technology is the only way to. know deliver any product or any service. and you know when you're talking about. masses like you know you want to create. thousands of accounts thousands of. products do lot of you know two and. fourth so they give it quickly okay tell. me according to.

top two traditional Banks and top two. modern Banks this is a very tricky. question top two cannot I'm not asking. from the point of view. [Music]. of all. thect resolution.

B I not name one or two because most of. the banks are falling in the same. category from a Legacy. Bank Union Bank of. India State Bank of India Punjab. National Bank they're good no no they. are I don't say good you will face. challenges by that's so you will face. challenges with those Banks because of. various reasons and you'll not get that. service service would be a you know pain. for you for to certain extent and if you. see you know last week not last week.

last year you know in Ni has you know. referred that you know it's urgent need. for Cooperative Banks to you know come. up to the PA of what the commercial. banks are there it's urgent need they're. telling because the reason being is uh. largest number of Internet penetration. is in rural area more than 60% because. we are we are a rural country right uh. number of tier three tier four cities. are more than your Urban and tier one. two CI. population and you know the largest. number of banks are.

there. large so that means the banking is. happening at that level at rural so the. coopertive banks have to be empowered no. they can't do this business they can. maximum what they can do they can open. an account they can lend some. money because they don't know what to do. so then we come so what we do one of our. solution is tailor made for a. cooperative bank so where we onboard. them as our client we take care of the.

entire Tech part so the two on a very. light light model it's all SAS model web. based model so where they need not. invest much in technology they need not. invest because the biggest challenge for. a Cooperative Bank is they have to. invest money and they don't want to do. it and even if they do who will run the. after. that who will run the show they need to. the. team right understand right so then what. happens the entire excise goes for a. toss so they don't want to do but they.

want to grow how will they grow so their. book size Remains the Same now what we. do is we onward them as our client then. we help them to onboard a merchant onto. them now if you see today in today. situation I don't know if you are aware. in rural places most of the people have. businesses have. [Music].

next this a very relevant thing. happening 8 or 99% do this they don't. keep anything in Cooperative Bank you. know why because they're scared not. about scared one is scared because. anything can happen any time number two. they can't mobilize the funds the way. they. want immedi.

limitation why would he take that hit. because he has to run the business so. what he does he uses that Cooperative. Bank only to. collect tell me a modern Bank tell me a. modern bank which one do you like modern. Bank in terms yes. HDFC you'll consider HDC as mod modern. bank because they are constantly growing. they are very new any of the new banks. these apps and stuff which you like in.

terms of apps One bank is there. idfc idfc they have done tremendous good. work in apps Neo banks in terms of newo. banks it's you know too early to say. because you know again as a newo bank. they have some challenge they need to. ride on some major bank because new. Banks does not have a license from RBI. for example you know uh you take any. name so they ride on a major Bank like. IC HDFC or some other bank right for. example Federal Reserve if Jupiter is. there they ride on federal bank right so. they give a layered experience but what.

happens as long as their banking partner. is strong enough it becomes a you know. viable. solution that becomes a challenge so. that is a reason Neo banking is evolving. yeah that's you know that's a big big. big big space you know to grow but lot. to happen because there's a big. challenge it doesn't fall under the. regulatory.

framework okay tell me why different. banks give you different kind of credit. limits multiple reasons one for a same. profile let's not talk about. that very simple idea let's say credit. card. right HSBC American Express HDFC. to top card.

providers. HDFC. limit when I started same. profile. right on day one one I get it.

and it goes to. whatever do it that way. right. limits because there are three factors. one is Banks risk taking ability their. risk exposure and number three they. their way of profiling you you said you. know the last bank which was giving you.

more loan the reason is they consider. you in a different category because. their understanding towards you is. different and they want to take a larger. risk to be very. Frank Second Bank what you said they are. in between they are like know risk Cs. and not Risk Takers so they like they. want to play safe they don't want to. give more not less because the reason is. they want to take a chance with you if. you see again age group also matters. right see everything comes at you mean. I'm giving I'm asking. you HDFC HSBC.

MX right. and in their own games still the reason. being is approach different. different. like different when you talk to them. it's different when you understand their. process is different.

so why is. that it's that right in a single. transaction you can only do let's say 10. 15 lakhs in HDFC but you can do 35 40 50. lakhs in HSBC right a CR in. MX single day transaction differ same.

and also if you see every Bank gives you. a different limit of transaction you. heard that H limit is okay get bank. again you are same person you are means. you know for example you have XYZ. company that company has same balance. sheet H same documents you open in same. three different places but every bank is. a different per day limit yeah per. quarter limit per limit so why is that. so I'm just combining these two things. because they risk taking up TI and their. methodology of assessing you is.

different so for example I'm telling. very conservative bank they will tell. first have only. [Music]. 25. moreac so then there's one more bank. which should tell day one you can do. 50,000 for example you know DBS bank is. there Singapore. B the limits are like insane insane I. know why P are crazy. and that same limit applies even for.

Indian. customer it is not that it's for a. customer who is based of Singapore or. Hong Kong it is for the same even in. India same limit apply because their. banking methodology is very different. the reason is they know how to take risk. I'll tell you they know they one of the. bank in terms of Technology they know. Forefront Runners heavily invested and. probably they one of the best tech team. in the world for that matter even fintex. might you know fail they might not fail. and you know they're very secure in. terms of so what they do they have.

mitigated the risk in a very beautiful. way so whether it is for limit whether. it is for giving a more credit they have. understood your profile and they have. Incorporated new mechanisms to recover. the funds using your profile see giving. a limit is slightly different because in. the limit what happens it's your money. your your money is going out in the time. in the in the in the point of a credit. card or the money it's the bank's money.

let him do for sure and they also know. how to recovery so that recovery. mechanism what they have made is very. well defined because the touch point is. the same pan card only see for example. today in any Bank where you want to go. and apply a loan first thing they ask is. what pan card because every financial. data is connected to the pan card and it. can't go wrong then comes your you know. other you know document like your you. know passport and your you know civil. and all that gives you a fair. understanding who you you are but. whatever you have done how many Bank see.

if you give a pan card number you can. make out how many bank accounts you have. where all you have money you can make. out that so their understanding is. slightly different on the first bank. they see this guy has so much so let us. take a risk and know risk appetite of. those banks are larger you talk about. City Bank which now again it's in got. merged with access so you take a name of. HSBC. Bank they are well ahead of taking a. risk now there the biggest in the world. right and that is why they are biggest.

if you take about again it might be a. wrong example JP Morgan their way of. working is completely different you take. a name of chase their way of working is. different so they are so huge and Among. Us for them this looks very tiny so when. what happens when your portfolio and. your exposure is too. much for. example category 8 example there there. are like you know category 30 C.

when they compare you eighth category. among that 100 categories you are like. very tiny in front. of so their assessment is on a global. scale if you see in the last couple of. years. C Rampage was there everybody used to.

have a. card not only that I've seen that in. most of the shopping malls if you go to. any shopping mall you get one one kiosk. of One bank and four five people you. know ready to you know welcome you I. I've not seen I've not been to shopping.

mall in years. now I don't know but I've seen it on. airport airport is you know it's a Mand. because they have to be there so then. what happens he fors a. product I'll tell you he will end up not. using that then he will end up you know. putting higher Fe and putting Cil into. trouble if you don't pay the card if you. don't pay in Timeline there is a penalty.

to it right intereste and for example if. you forget most of the people they don't. know how many cards they have. because because no you don't have the. discipline. right and that ends up know some sort of. discussion if he well in time he's able. to.

pay now what happens civil score civil. score is going low he goes to imagine he. wants to apply for personal. [Music]. loan he gets iritation about. that the good. parts you know all those things so you. end up getting a wrong information see. for example MX card everybody can't buy.

right right there's a filter right. category so it's very clear so who needs. that and who falls into that category. can can be easily eligible for thex card. and even MX does not have any problem to. give that. card they don't want to you know have a. wrong customer in the ecosystem same way. this Bank also should understand when. they are giving any product to their. customer other than a card they should. also see this say so that doesn't happen. most of the cases that's where we end up.

seeing all these situations and one more. thing I have seen coming to this loan. lending part see that's also big big. Market. lending there is a overselling of that. product govern they said the same thing. right he said the I think yesterday or. day before yesterday he gave that. statement NFC.

they don't realize that this can be. harmful for our economic stability. correct that's what he meant right. something like this only because he's. giving the speech so there are more than. uh I think growth at any cost is not. good I'm. not ,000. lending partner digital I'm talking.

about only. digital I do agree know we have larger. you know. population they keep on selling a wrong. product and they never give a Clarity on. the interest rates. and but what I have seen or you know. it's heard and you know noticed when. they're approaching him the for the. first time they give all the clarity. they are you know very kind to him to. know give him whatever is been asked.

for as that progression happens after 1. month 2 month 3 month that same is not. followed they only go for know one thing. whether it's for Recovery or you know. that repayment but they don't tell how. to use it what are the use cases like on. what particular date your interest rate. is calculated so these are the things. which has to. [Music]. goit you. it's a wrong thing but you you have.

heard in the last couple of months. people have you know committed suicide. and all not paying they're not able to. pay the loans and all why this. happened this is very wrong right you. know for some need and you not able to. pay. it we don't want to get into that you. know why it went wrong or what measures. that person took but we also need to. understand somebody who is lending that. amount did he give the clarity did he. tells properly these are the.

consequences see for example I'll just. tell. you if you see most of the apps these. apps they tell you know give your pan. card and give this thing take a loan in. 2. minutes very good I'm really happy for. [Music]. that what are your repayment terms but. don't you think.

eom. because consumption power spending power. investment power and growth. power so it's it's actually good right. to for an. economy ofal should come and what I also. feel is lending has one more challenge. here see you should lend more I do agree. you need to get more capital in the. market Capital you know the growth is.

you know. possible you should not give to a Capal. to. wrong and you should also look at the. profile digital profile when it comes to. unsecured lending see SEC lending is a. different topic tell. me see every bank has standard standard.

first thing is they look about his. banking. profile then comes these two are the. very you know. mandate then comes they look into is. credit worthiness credit worthiness. comes at various things you if you see. today. because are we giving the right amount.

of we should give him L. that so see thanks to you know the. latest you know public digital. infrastructure everything is openly. available you know if you just pull the. data from using a pan card you get all. the data so what these agencies do is. third party agencies they understand. this credit profile they understand what. is worth of you know if there is any.

know red flags for. example default so they get. understanding one is your civil profile. which gives a parameter you know 720 730. above gold and all so there is a. parameter to it second thing is they. also understand this history credit. history whatever. datable so you get every data so that. data is then understood or interpreted. in a better way so you know there are.

some cases you know you know somebody. know his 19s or 20s he would have. defaulted a loan and later you would. have paid but still it is a remark so. when a banker or a lender sits and. understands why it happened what. happened was it you know is he you know. defaulter is he habitual offender or it. happened once you know because of. whatever reason everybody can go wrong. right once in a while so then is index. is made then they also talk about the. other then comes you know if you talk. about the secured lending they take some.

some sort of collateral which should be. higher the value of what is taking. simple it. [Music]. ising unsecured lending is all about a. small ticket size like you know. somewhere around weing from 50,000 to 5. lakh this is unsecured lending so just. basis of his income on his some data. lending happens the that is the most. trickiest part but that is wrong or good.

it is good in one way but at least some. sort of validation has to be done before. do that I'll tell you why now one thing. is yes you getting more Capital you said. you're giving him empowerment because. you're giving him Capital to use for. whatever thing but this should not be a. precedence to everyone right there. should be some checkpoint even in the. unsecured Ling about all these. parameters so nothing wrong see it might. be one time. effort whether on a mobile or whatever. form factor try to understand him in a. better.

way why he's taking see I want to give. an example most of the people when they. take a loan they don't give the right. reason right 90% of people when they ask. for a home loan it's understood for home. loan because that channel is done in a. such a way it goes to the Builder or you. know the the guy who is selling the. property in the case of personal loan. because it's a personal loan he can just. I can I want for anything my you know. home renovation I want you know for some. marriage or. whatever some sort of validation has to. be done uh the reason being is if you.

don't do that validation you don't know. why he taking no it is it is lenders. responsibility to know that he cannot. BL that is wrong don't you think as a. lender you should have that you know. concern to understand why he needs okay. talking about lending do you. think capital. I completely agree with it and even.

getting a loan is also a big challenge. very difficult right difficult so I was. comparing cost of capital in the world M. us may cost of capital is around 4% to 5. 2 to 5% 2 to so us may cost of capital. is around 2 to 5% China is around 4 to. 6% India May 8 to. 10% us or China.

and that's what is anticipated I was. checking the global. [Music]. indj corre which is. 6.5% GDP grow on second is second is. Indonesia China. 4.5 so fast growing eom. in the.

world experts. funds right so fastest growing economy. but cost of capital is so high compared. to the other economies why because. Capital you have to understand we are. not a developed country we are coming. from a DN we are coming from a. developing and economic. country the reason being only since last. 2 three years or like in the last decade. we have removed that name if you see all. those indexes they still consider India. as a developing and emerging country the.

reason being after Independence if you. see Banks were given a mandate to only. boost economy there were no other. mandate get some money in the market if. you see post Independence money was not. available currency see that time there. was no digital currency and most of the. people did not had a currency it might. be in the form of a property or asset. but there was no Capital flow so. government thought you know the best. thing is we are to flow the capital so. Banks were given only one mandate to.

infuse the. capital then the Mandate changed then. they started into know empowering the. customer exposing him to the various. needs as the needs also increased we got. into industrial economy Revolution then. came the you know finch.com and all now. in the last decade if you see we are in. the right space but still because. Capital was never freely flowing. available and capital is always held and. see if you have to understand we are a. cash Rich economy and most of our.

investments are in the form of either. gold precious material or physical. assets physical assets so when a. country's investment is on those asset. classes if you see the asset classes. from gold real estate to other uh. non-tangible or intangible assets have. started in the last 8 10 years if you. see how mutual funds grew you know the. the impact of that you know mutual fund. say and all these campaigns helped.

that's if you just go back just imagine. or just check people were not that you. know crazy about mutual funds people. were you know scared to buy a mutual. fund people are not investing in IP. forget about IPO people are not you know. that you know comfortable to go and. invest in a stock. market started started and if you see. that IPO fever is how it has caught up. right everyone wants to invest because. why knowledge because the awareness. started creating what is IPO what is.

Advantage get a benefit I get more. discount I'll make more money out of. that so IPOs started more people started. Bing more Capital started flowing more. and one more thing GDP if you look at. from that point of view it is little. sporadic in India see you can't compare. India with any country for various. reasons one is the size the. population the working capital. and the age group which is generating.

income if you see like you know Japan. and all like the age group is like. slightly higher there they worried if. you look China they have disparity but. you know still they have a constant that. Jo 30 to 25 to 40 still they have that. people still but when you you see in. India what is the percentage of people. who are earning M so that is not at par. with the population see how many people. are in earning phase and how many people. are not earning phase retirement St.

who are not less than 18 or not who. don't fall under that you know Capital. group we have huge among that these two. categories the middle categor is what. you know is getting the capital right so. that is not at with. this so more people start earning more. people start getting the capital and. funds which come from outside for. example you know uh if you see like most. of the people when they go out of India. they send what money back to India and. right now if you see how many people are.

going and how many people are sending it. back how many people want to come back. now everybody wants to stay outside for. whatever reason you say and nobody wants. to come back and nobody wants to again. reinvest in India most of the people. wants to either settle down there if. they settling there what is the point in. investing here but don't you think more. people are investing in India no they. just again it started of post pandemic. post pandemic it has changed if you see. before pandemic people were having a. different mindset now things have. gradually changed but now in the last 2.

years 23 24 you can see people are. investing more in it because they. understood it again various reasons they. theyve seen that the influx what's. happening how Indian econom is growing. how digital payments are growing how the. know new reforms are coming so people. are seeing that very evidently that yes. now my capital is not at loss see the. appreciation of real estate is what it. increas to an extent take any City for. that matter Mumbai Hyderabad Bangalore. see the cost any City Wild any city. which has reported forget about City any.

place which has reported a depreciation. in. India I don't think. so. businesses Capital tell me top three. mistake Capital. Lor from of. VI I would say.

I'll just go one by one it might be in. whichever order yeah they take a wrong. amount of. capital and second thing is wrong amount. of. capital it will be usually either of the. one 90% or 60% or 70% I would. say they don't take the right amount of. capital or you know optimal what we use. the word.

[Music]. because I'm exposing too much of myself. to The Unwanted capital and on that. capital I might not be able to earn that. much of interest but I still end up. paying more interest towards that loan. because my lending loan interest is more. than. my I make loss. at a and that loan of amount that.

Quantum of amount is not optimally. utilized where business go wrong is they. don't have advisor they don't have a. proper business consultant to tell trust. me one thing I can tell you any business. cannot operate on its own yeah they need. to have one person whether of a mentor. guide professional guy or personal guy. at some capacity to guide them where. they are going. wrong you know just imagine if if you.

meet someone of your if you meet any. entrepreneur or any of your friend who. is doing business. [Music]. what did you go. ask you don't ask right and neither he. is comfortable to tell you imagine like. normal. scenario both close you know if you know. buddy you know PA he might. tell p. I am having some you know problem with. the Capital Management working capital.

there is a. pay in so then the problem is again. there is a high probability you might. not meet him next. month so because of this what happens he. needs not you he needs a right guide to. tell him where is he going wrong he. needs an analyst a financial adviser a. consultant who can guide him what is. wrong with his finances because I tell. you why he went wrong in the first place. you have to understand it was not his.

focus it was not his Forte for example. if your friend is into Hospitality. Hospitality Wass his core various. invested his time and energy now he is. not completely conversent with finances. yeah now he needs what he needs a guru. he needs a adviser who will guide him on. the know how what to do what not to do. then comes taking the advice in the. right time then comes implementing so. first mistake they know underestimate or. they overestimate they don't know the. limitations second thing is they don't.

take a right call for example I need a. capital this month example I'm I'm into. manufacturing of some lights so the. festive season Diwali. so at least I need to plan four months. ahead prior I need to have the capital. in order to create they good so I might. be in any point of the supply chain.

supply I might be distributor I might be. a supplier or I might be you know. retailer so in the entire supply chain. all of these people have to understand. proactively that what am I doing. everybody in India whether it's a risk. whether it's a business decision it's. reactive not proactive. Proactiv you end up see you might still. go wrong it's a shield or you know it's. a guarantee card no but you end up doing. minimal loss you end up doing a minimal.

you know wrong. decisions yeah next thing is you will. not take a wrong decision next time so. you understood where I went wrong and. this knowledge will give you idea to how. to have a right set of decisions in the. coming. days so this is one thing we can add it. up and while giving the capital. back they don't understand the value of. time businesses mostly small businesses. they don't understand the value of time. meaning uh repayment well in time.

earlier the payment earlier foreclosure. if you had heard you know most of the. people there's a called phrase called as. foreclosure or pre-closure you know. there were some charges you know even. regulator said sorry boss you can't do. that it is a privilege and you cannot. stop someone playing early and there are. no pre-closure or foreclosure charges in. any you see if you take a. loan yeah you have to incentivize for. that that Banks don't incentivize. but if you.

see so no don't you think it is. senseless it's. bullying so instead of that I won't say. a big incentive a very minimalistic. incentive is given can you imagine what. will happen to that customer he will get. a positive vibe that next time if I take. a capital let me see depending upon the. close it early I'll get more incentive. now coming to the other side of the. story the other person who is taking the. loan he also should develop is. trustworthiness how will it develop so.

fun thing is you can incentivize which. doesn't happen and number two in case if. something goes wrong in the entire. course things are not handled well. especially in the you know digital. ending space or in nbfcs I've seen so. Banks might have their own protocol you. know because RBI has you know laid a set. of rules to recover the money you can't. you know you can't go after business. hours there are certain rules which you. have to follow right at the end of the. time we living in a Civ you know. civilized Society you.

know. again both are equally responsible now. if this guy is who has taken a loan is. not cooperating so what he has to do. again he will end up you know having. some sort of a result now both the guys. are you know a tandem and understand. each other see I'll tell you 80% of or. not 80 more than 90% of the problems are. s out at a common Point discussion where. you sit together discuss look at the. solution problem. you not end up getting a solution you.

need to figure out a solution okay. examp I need to come to you or you need. to come to me sit and work out a formula. a mechanism how we can come out of. this you cannot you know write off that. so how do we work what kind of a time. frame we can see what are other. modalities you might end up me giving. one more product of you not again a loan.

which might again add up my Revenue to. that so that imagine working and I ended. up having a loss due to some reason and. I might need some product of you some. some product which is not only in the. form of capital that can add my. production that can add my supply. chain brand. promotion so then what happens you are. actually helping yourself in return M so. that mindset these people should get.

especially this segment of lending they. don't look into. that so this has to come what do you. think. final. system Focus customer. problems why do you think this is you. know inbuilt in our culture if most of.

the thing is I'll tell you why I to tell. you culture means for example you want. to go for a vacation imagine you want to. take a break you just call someone and I. want to take uh I'll just give a random. example not to. go and you know you'll just call up I. want to get a package for package and. just suggest me trust me you will not. understand why you are coming and what. is the purpose.

[Music]. all are sold out and he will give you a. notion. [Music]. that because you can't go and see there. right you trust him now instead of that. he told that this is a actual fact it's. up to you what is your budget how you. want to cater what is the purpose. see it is too personal but yes it's. required do you want to come down to.

wind up you know like you know have a. relaxation or you want to come down for. business purpose even though business is. it like uh two days do you want to mix. you know business and you know pleasure. Bo together. somebody this. happens you tell no no no I'm coming for. business purpose I have a two days. meeting and I want to go back he can. tell sir come down I'm not going for.

free you just give a try up to you then. what happens you get that feeling let me. try you get a Clarity this Clarity is. missing in an industry so tell. me in two simple lines perect two simple. lines for. [Music].

this is. for canate everything everything. canate can can up to enterpr even. Enterprise guy can take a solution. because we can give a curated solution. for him anybody who is and above small.

I. would coming to and this is a right. fitment now coming to the other product. of what we have Banks Cooperative Banks. small Finance Bank on even see large. large Banks they don't need our product. to be very because they have everything.

in buil they have a technology they have. a team they have resources and they have. right amount of capital and they also. have time a smaller Bank it can be a. Cooperative Bank it can be a small. Finance bank or it can be any bank which. is not interested to invest in. technology does not want to you know uh. Focus does not want to diversify it. focus on building a technology product. it wants a ready to consume product very. lightweight asset light see that is the. best way to you know have your. profitability asset light product and.

have a better you know uh approach. automated approach and Outsource it to. know trusted partner so that bank can be. a partner to so we can give a better. solution to them to empower their own. customers see you know where they are. failing or where they are missing the. mark failing is a wrong word everyone is. trying to know make a Mark here but. where they're failing is they are trying. to compete with the bigger Bank yeah and. they can't do the reason is they are not. ready for that game.

you take some person somech company like. us who are you know well ahead ahead in. terms of you know approach and solution. use them go ahead and compete with the. larger bank that's what I can see start. we started a year ago one year back we. just completed one year but we launched. the product just in the month of. August launch AB launch there was a. global fintech Festival the month of. August I think you heard I saw the I saw. the ad also outside.

the. screen thanks so wow. so the the purpose was to like know to. reach out the message that it's going to. launch so we launched in the event it. was a grand success for that. matter. solution before giving solution we. thought we understood what is the pain. point and why and why nobody's in the. market I'll tell you what we understood. my limited to our you know knowledge. there is too much of heavy lifting you.

need to meet too many stakeholders and. you need to run a tight ship in this. ecosystem what we call it as you know a. power connected banking or fintech. banking ecosystem one thing is. Partnerships are not that easily. made Banks being Legacy systems I can't. blame them they have their own set of. challenges understanding so so they have. something called as I will not blame it.

as a fixated mindset challenge they have. to think multiple times before they. partnership they extend a partnership. with any F or any any partner the reason. being is they're a regulated agency they. like a you know noal agency and you know. the kind of a regulation we have now. it's good you know regulatory has to be. there framework there's every. possibility know one of the stakeholder. might go WR whether it's a end user or a. bank or a merchant or. businessman but limited time.

frame. [Music]. understanding we took like couple of. months it for again bank to bank it. depends One Bank might take two three. months One Bank might take four. months we are like close to around 12. Banks we have 12 13 Banks top three. Banks uh access bank I FC bank and yes. bank so let's say HDFC and.

access partnership. HF okay this might there might be two. reasons one we reached out them early. and they are also like embracing change. and they also very eager to explore see. if a bank as a entity is curious to. understand the product validate the. product see if any product goes to bank. with the right intent at a right time in. a right you know framework. if everything falls in the regulatory. framework no bank would say no M but.

again it depends are they also. interested the the way we are interested. to partner with this so if they are able. to see the value if they able to see a. long-term partnership they will. certainly good do you think he dep on. the person you're talking to as well to. an extent it matters I agree because if. the person is not taking the signals in. a right way or is not able to comprehend. or not able to you know get what we. dealing the Cs. you.

know's you end up having multiple. discussions multiple discussions and one. more thing the more you meet and the. more you understand it's better. communication should be free flowing. because every bank they have their own. mandate they you know running towards. their own set of goals own Milestones to. reach so this is also one more reason to. do. so questions like what are the questions. they ask you usually the first question. what comes is why are you doing this. second thing is what if something goes.

wrong. responsibility we have to say. yes you know diversion.

for example simple. [Music]. example okay and that amount is. pertaining to some something which is. not. regulated so then you still party to it. so what happen you have to either. reverse.

it so then your bank account you are. subjected to that particular discussion. because it came to you and why did it. come to you you cannot go and say I. don't know so it also depends how we are. representing what we are measures we are. taking see risk is there in finance see. any Financial product or any Financial. instrument is not free from. risk including cash so like customer.

am they ask to deposit in a form of. security deposit and I think fair enough. till they get a point of confidence and. how large the security deportment. usually is sometimes it it starts from. lacks and it might goes up to crores per. customer not customer as a one one time. you know activity per customer usually.

[Music]. see even bank has a mandate to open new. account but they're not able to open. even they need customer right they need. a. [Music]. see so every Bank wants a new customer. and from where will they get they need. to get from somewhere right now they. have multiple agencies you you know. business consultant third party agency.

but the challenge is they need to get a. quality customer quantity and you know. now everyone has come to a stage where. they don't want that clutter they want. the best now getting the best is a. challenge so we help them in such a way. that know we give them a best customer. so what we do is we do the entire a. lifting we first identify a customer. Source him do the kyc as per again you. know R norms and regulations. we make sure that every every every. point is checked thoroughly then what we.

do is we understand what that customer. needs. segment. micro unless do the root cause analysis. unless understand the pain point of the. customer giving him a wrong product will. end up into a disaster but. majority in fact there's a economic Time. study.

correct and when they were. asked they said. 60% of the people were not happy by the. products which bank sold them so they. were not happy they were like. requirement problem and. 52.6% unhappy.

this is what happens with most of the. people yeah limited you have idea about. a product that's where most of the. people go wrong I'll tell you why you. need to have a financial adviser or some. Guru for that matter to guide you see. without it it doesn't work because these. things are not taught to you in your. school and college unfortunately let us. accept this fact India May knowledge. stream I would really recommend if you. know how to invest where to invest how. to handle finances yeah at a at a very.

generic level you need to have a PhD but. at at least at a college level if it's. incorporate subject trust me we would be. on next pedestal true the reason being. everybody should comprehend how to. handle his finances in short I have to. tell you. businessman cricket.

this is. what so this is what happens so I firmly. very beautifully explained this is what. happen in stock market with most of the. people and oh my financial management. don't talk about stock market it is not. a subject where I should touch but out. of my limited understanding you know. stock market is the real you know money. making ecosystem if invested properly.

and if you see not every person makes. money in stock. market right you see where the sensex. has reached you heard about big bull you. heard about all those people who have. made fortunes you know in a very big way. yeah and stock market it is a most sort. of thing and it's it's it's highly. regulated. iset you know why most of the people. first timers the retail.

inv because they have a complete. knowledge very different they have. different knowledge they have a. different exposure and also they can. mitigate the risk if required retail. investor first time you. know I got a first salary let me invest. inp or in a stock market he goes and. invests without a goup without a. knowledge partner so then what happens. he ends up in investing in a wrong. portfolio yeah he does not know how to. manage a.

portfolio but he does not know how to. constantly manage it see. stock I need to constantly monitor the. trends I need to monitor what's. happening in the market see the various. situations. true you end up losing you end up losing.

a lot of money and you you know book. book instead of booking profits you book. loses Market this not my cup of tea it. was not your cup of tea it's it's a. wrong notion it was you did not get a. right Mentor but I'll tell you I read. something very interesting today. [Music]. okay first Tim. very interesting right.

um which was around. okay this was yeah so it's like. to individual Traders derivative. markets 21. 24. 1.8 and most of these people. majority Maharashtra Gujarat up or. now what's more.

fascinating soci. economic almost like majority middle. kind no the buk of these. Traders below the AG of.

can imagine and you know what's. contrary the contrary is. that wow okay this is insane good. good this in. number. 31% 22 23. Market. 31% below the AG.

of. 31% last year year. 43% despite knowing the fact. 93%. agative markets.

[Music]. specifically really you know disturbing. and alarming like where are we heading. and you know what's proportion. [Music]. very high.

in so people who make more money maybe. they are investing more wisely versus. people who are not making. money there was quantum of the amount. also might play a role no no it's not. Quantum I'm just talking about purely. based on percentage of loss on.

Capital this is the data which is out. there very very alarming very surprising. do you think her. product pros and. cons I like let's say for example a. XYZ Fund mutual. fund invest in this if you want this.

this this this this don't invest if you. are this this this this this if you see. nowadays they put that meter risk meter. and all right but it's a very you know. uh beautiful way of showing that what it. is but it is not going to a level where. whether this suits me or not this is. risk meter is. I feel.

small it's. not it's not going to the level of. personalization that's what so we call a. word called hyper personalization any. product which is curated to your. portfolio your need. your uh expectation that will make sense. this is going to help you to understand. I need it and also you get a right you.

end up you you know you end up buying a. right product product X compan Y compan. it doesn't matter so this hyper. personalization is really important in. everything so some way. [Music]. not why will I tell that. [Music].

but this is one thing which most of you. know Financial products has to. incorporate I. believe no one will have a heartbreaking. you know situation wrong because see to. be verying none of the fintech products. or financial products or banking. products were done created with the. wrong intention right I don't think so. it's not possible because. fitment because.

wrong it becomes you know wrong you. know call perfect thank you so much for. giving me an understanding and everyone. an understanding about banking problems. of banking problems which we have. because of our culture problems solution. oriented mindset and too many more. things that we covered thank you so much. and important. thank you for doing this thanks a lot. thank you thank you so much.

episode. deted value provide.

because one episode can turn around. someone's whole life thank you so much. I'll see you next time until then keep. figuring out. [Music].