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Navi Mumbai, India

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2014

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Security Payments Regulation & Compliance People Wealth management Retail banking Sustainable Cloud Start ups Financial inclusion Cryptocurrency Identity Markets Predictions

Kartik's blog archive

2022 (7) 2021 (17)

Kartik Swaminathan

Author - 3F: Future Fintech Framework & Founder at Fintastech (Fintech Consulting & Coaching)

Message Posts: 25 Comments: 11

Bio I consult in Fintech and work on Product and Go To Market related initiatives with BFSI Firms, IT Firms & Startups in Fintech. Have recently authored a book called 3F: Future Fintech Framework. The book simplifies understanding across all key trends and themes in Fintech and proposes a futuristic framework for growth and innovation in Fintech & Digital space. Career History An avid Fintech Enthusiast with over 20 years of experience in successfully Ideating, Creating & Delivering innovative Digital & Process Automation solutions in Fintech. Domains covered include Banking, Payments, Wealth Management, Asset Management, Capital markets, Neo Banking, Robo Advisory, Islamic Banking, AML, Fraud Management, Lending & Financial Inclusion.

Blogs

Banking Strategy, Digital and Transformation

Banking on Branches in the Digital and Fintech Age

10 Sep 2022

The advent of the fintech & digital age has had an adverse impact on both perception and reality of having physical bank branches. We have seen largely in developed nations, that a large number of physical Branches are being closed. However, on the contrary, in countries like India the number of physical bank branches is increasing. This can b...

Fintech

Fintech and Regulatory Unbundling

22 Jun 2022

Fintech is a highly regulated sector, and thereby many (or most) of the Innovation and new business models / propositions, depends on policies and norms from regulators. Historically financial regulators have been better focussed in terms of the policies on Financial Risks. Then with retail banking and branches, some focus started to come on Operat...

Fintech

Metaverse and Fintech

26 May 2022

The word Metaverse is making highlights in last few months. Many leading organisations have created metaverse environments or become part of one. Metaverse is an immersive Digital environment (Virtual World) where you can interact and transact. For e.g. Visiting a virtual mall and making purchases, attending an event / conference, Gaming etc. So, m...

Fintech innovation and startups

Super APPs and Fintech

29 Apr 2022

Over last few years, we have heard of Super Apps (Applications), and how they will be key and dominant players in the whole digital ecosystem. This is backed by efforts by leading players with mixed or limited success. We have known of success of Amazon, GoJek etc. and also many others who could not realise their efforts fully or effectively. Simp...

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Kartik is Commenting on

Fintech and Regulatory Unbundling

You are frequently ending with foot in mouth. Exactly, your company cannot be a Fintech as your arrangement is not under any structure which is authorized or regulated to offer Financial services related solutions directly to customers, using tech. That is the difference. Fintechs need to be under some form of regulatory arrangement / structure and authorized to conduct that activity. Even Jar in India needs to be either an IFA or RIA (Regulated entities). So they are thereby regulated. Your shallow logic of how chime has been stopped, does not mean that they were unregulated earlier. They were trying to be over smart and it has come to notice of regulators, so they are being stopped. There are many informal investment collectives and lending firms operating, that makes them more illegal than unregulated. I am not claiming anything unlike you. I am infact suggesting an progressive approach, given the problem arising out of frequent regulatory tweaks and needs, due to evolving ecosystem, where fintechs are regulated but there is still no clarity on many aspects. Thus, a 4 way classification will help. Your continued mention of so called twisted interpretations, does not prove your point. Rather, it hints to a lack of understanding and appreciation of the topic involved.

28 Aug 2022 Reply Read article

Fintech and Regulatory Unbundling

Jupiter operates as an NBFC again partnering with banks for Bank accounts. So, it is also regulated. Chime operates as partner to Stride Bank and Bancorp Bank. Something like a Sales Agent, DSA or BC arrangement in India. Last year it was stopped from using the work "bank" by regulators as it is just an agent of the Bank and not a bank itself. Why did the regulator stop them from using the word bank, if they were not regulated? Moneycontrol also offered account aggregation services on its site few years back. This was using API's from Yodlee / Intuit. This makes them more of front end providers and that is one classification I have suggested in my article, in order to accomodate and manage such developments with use of Embedded API's in Fintech. As I said, you are sticking to one word, going round and round by twisting them to your own context, despite being proven wrong everytime. This is what is called being rigid and commie like.

28 Aug 2022 Reply Read article

Fintech and Regulatory Unbundling

RBI statement is in context of PPI's like Slice & UNI's who are authorized and regulated only for payment purposes. They are regulated entities, but not authorized to lend. They were trying to extend their luck (or say innovate) by trying out BNPL type products, because there is convergence happening between payments and lending. This led to reporting and risk related issues (and many other) for which RBI has clarified that only entities like Banks (as need to be routed thru bank accounts) can lend, as they are monitored for credit risk. This is how regulations evolve. The use of word regulated entity is in context of the activity they are authorized to do. So, more of tweak in process. This does not imply that Fintechs (like Slice and UNI) are unregulated, as you wrongly understand, interpret and continue to parrot.

28 Aug 2022 Reply Read article

Fintech and Regulatory Unbundling

Again you are spinning your own story, by linking Loan issue of PPI (which RBI has stopped), to make your own conclusion that they are not regulated. Both Slice & UNI are regulated entities under PPI (Prepaid Instruments) Guidelines by RBI. So, you are wrong to say they are unregulated. My article starts with fintechs being regulated (by creating a background), as that is the reality. It then moves on to recent measures by regulators against certain innovations and grey areas. The article infact provides a solution by having 4 way classification of entities and in a way, this will address many issues and realities of ecosystem, whilst not curbing innovation. One thing regulators are most concerned about is risk. This 4 way classification also classifies key risks between entities. That's why I say, that you have not got the logical flow and crux of the article. Again held on to certain words driven your own conclusion. As mentioned, healthy counters giving related and specific points are welcome. Not the kind of unwanted / rants, tangential arguments (by linking one issue with another based on your false conclusions) & personal remarks that you resorted to in your arguments. This is unprofessional.

27 Aug 2022 Reply Read article