Payments banks are expected to revolutionize financial services the way e-commerce has transformed the retail industry in India. With 11 new licenses in the payments bank category, these new banks need to be hailed as ‘challenger banks’, as they take on traditional banks in India. The success of these challengers to make inroads in the domain of the strong incumbents and boost competition in retail banking is likely to depend on the way they approach the market and the value propositions they create.
This point of view from KPMG in India, aims to capture the emerging market trends and their likely strategic implications on the business of payments banks. It also simulates how a customer transaction statement for future payments banks will look like. With looming questions on their viability, the point of view also identifies critical profitability levers for these banks and have elucidated on how some of these levers can be adjusted to improve profitability and shorten the gestation period.
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