A revolution in India’s financial sector | Competitive Intelligence Bytes – Jul 2016

Competitive Intelligence Bytes
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As technology continues its disruptive course, and threatens many enterprises and economies – it also provides great opportunities. In a country like India, the likely benefits of using technology to transform delivery of services, products and money are huge. At the same time, scale and inclusivity pose enormous challenges, given our population of 1.25 billion.
In this context, the initiatives of the government, the RBI, UIDAI, NPCI and other agencies have been nothing less than extra-ordinary. Over a billion Indians now have an Aadhar card, an online biometric identity. The number of mobile phone users exceeds a billion and around 20% of these are smartphones. The Prime Minister’s Jan Dhan Yojana scheme has already opened 226 million bank accounts. The RBI has issued a record number of licences for small banks and payment banks that will directly address financial inclusion.
Finally in early 2016, the RBI governor Dr. Raghuram Rajan announced what he termed as “revolutionary”, the Unified Payment Interface (UPI). This is an enabling architecture that allows money to move from any phone to another phone. Read about why the UPI is revolutionary… so much so that Nandan Nilekani terms this as a “whatsapp moment” for the financial sector.
Case study
Payment solution provider taps a USD 350bn opportunity

Strong competitor activity and reports on the attractiveness of the Indian cashless payments solution market prompted a leading international payments solution provider to evaluate the opportunities in India.


At the time, certain segments of the market were virtually non-existent in India. There was little documentation, and the impact of regulatory policies was uncertain.


Hence, estimating the market potential was a key challenge.


Find out how our insights helped our client develop a strategy for the Indian market


India’s financial revolution will, no doubt, boost e-commerce in India. We expect the UPI and other digital initiatives to fuel significant opportunities for start-ups. At the same time, valuations of prominent Indian e-commerce players continue to weaken. Earlier this week, we saw Flipkart pay a mere $70 million for Jabong (which was worth $500 million less than three years ago). The potential is huge, but it’s more a matter of getting the business model right – and finding a way to make money. It’s quite possible that tomorrow’s Unicorns are companies we haven’t heard of.

Do read about how we helped an international payment solution provider tap into a $350billion opportunity in India’s cashless payments market.

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