Tuesday
May 23
2017

Fintech’s Coming to Trounce India’s Banks

In the match for India’s financial services future, fintech just scored twice while banks are still struggling to retrieve the ball they scuffed into their own net. It’s just the start of what looks like a bruising battle for traditional lenders.

India’s banks, which still dominate the country’s financial landscape, appear to have hardly a kick left in them. Stressed assets without any loan-loss cover now exceed $96 billion, McKinsey & Co. said last week. An overwhelming 91 percent, or $87 billion, of the provisioning gap is at state-run lenders, whose net worth would be wiped out if they took the hit on their capital.

Source: Bloomberg Gadfly (link opens in a new window)

Categories
Technology
Tags
banking, financial innovation, fintech, India, mobile banking, mobile finance