Fintechs may pose a challenge to banking sector over the next few years

The formal and informal fintechs will pose a significant challenge to the mainstream banking sector over the next few years

At an inter-block cricket match in Purnea district early this year, all sorts of loans were on offer around the ground, with banners bearing cell numbers. None of these banners bore the names of banks but apps that could process instant loans with few questions asked.

This is just the kind of activity that Reserve Bank of India Governor Shaktikanta Das warned in a December 23 press release would result in individuals and small businesses “falling prey to growing number of unauthorised digital lending platforms (or) mobile apps on promises of getting loans in quick and hassle-free manner”.

But this explosion of