\n
Last week, RBI governor<\/a> Raghuram Rajan<\/a> announced the names of 11 entities which will be allowed to start payment banks. Compared to existing banks, these members are different sort of entities. With telcos, the post office and an online payment provider, it’s clear the RBI is confident that it has found a way to increase competition and widen the reach of retail banking. As encouraging as this announcement is, what is just as encouraging is Rajan’s promise that payments bank licences will be available on tap.
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\nOver the last two decades, private Indian banks have reaped outsized rewards for being even minimally better than the public sector sloths. The coming of a large number of payments banks will certainly increase competition and force everyone to be cheaper and better. Existing Indian banks can do with competition from more innovative and more technically savvy organisations. While banks implement the standard kind of technical solutions, there has been no out-ofthe-box thinking on solving real customer problems.
\n
Moreover, private banks charge too much for services. They also gouge customers on minimum balance penalties, despite having high minimum balance levels. Banks also have a terrible track record on selling inappropriate and unsuitable insurance<\/a> and MF products.
\n
\nIt would be reasonable to expect that with increased competition, banks will be forced to charge lower fees and fines, not pick the pockets of their customers at every opportunity, and generally behave themselves better. But will these things happen as a result of the coming of payments banks? They could, but only if the RBI does a much better job of protecting consumer interests.
\n
For example, without the RBI waking up to what banks do when they sell third-party savings<\/a> and insurance products, the new payments banks could be worse offenders. Since they are shut out of the lucrative business of giving high-interest loans, and will, therefore, have much smaller spreads, they may well have higher pressure to eke out margins from non-fund businesses. It’ll be sad if the new banks end up replicating the same bad behaviour that the old banks are guilty of.
\n
\nI know that the theory is competition will take care of these issues, but one must ask exactly how competition will benefit customers. Looking at how consumers have fared with other businesses that have changed dramatically in recent decades, the advantages of competition accrue to customers only when they can switch from one supplier to another.
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\nBusinesses with no stickiness, like airlines are the ones where customers have benefited the most. Mobile telephony is an interesting example because it transitioned from a high customer lockin to one where customers could port their numbers to other providers. Up to 30 lakh mobile porting requests are received every month. Even if many are not actually carried out, they are a powerful tool for the customer.
\n
If the RBI really wants to innovate to bring the benefits of competition to bank customers, it should work out a way to provide simple and painless bank account portability. Of course, every banker<\/a> in the world would proclaim the idea to be impossible and utterly unworkable, but that should be taken as a vote for thinking about it seriously. If Indian banks are to treat customers well, then they must be made to worry about old customers going away, not just about competitors capturing new, low-value customers. Bank account portability would be a great weapon in the hands of customers to make banks work.
\n
\nThere’s one other problem with the payments bank idea, which is that all deposits and float will be captured by the government. As it is, the Statutory Liquidity Ratio (SLR) imposed on banks is a form of financial repression by which government captures a quarter of the money kept with banks. With payments banks, it will capture the full amount, leading to an even smaller proportion of the funds being available for lending to private enterprises. One wonders whether this is the only solution to ensure safety of the funds with payments banks.
\nAnyhow payments banks are a great idea and the disadvantages far outweigh the advantages.\n\n<\/body>","next_sibling":[{"msid":48647653,"title":"Indian IT needs to build skills, acquire cos to win in marketing tech space: Nasscom","entity_type":"ARTICLE","link":"\/news\/industry\/indian-it-needs-to-build-skills-acquire-cos-to-win-in-marketing-tech-space-nasscom\/48647653","category_name":null,"category_name_seo":"industry"}],"related_content":[],"msid":48647702,"entity_type":"ARTICLE","title":"Payments banks will add competition & force others to be cheaper: Dhirendra Kumar, Value Research","synopsis":"With telcos, the post office and an online payment provider, RBI is confident that it has found a way to increase competition and widen the reach of retail banking.","titleseo":"industry\/payments-banks-will-add-competition-force-others-to-be-cheaper-dhirendra-kumar-value-research","status":"ACTIVE","authors":[],"Alttitle":{"minfo":""},"artag":false,"artdate":"2015-08-24 10:46:49","lastupd":"2015-08-24 11:00:08","breadcrumbTags":["industry","savings","insurance","Raghuram Rajan","banker","RBI Governor"],"secinfo":{"seolocation":"industry\/payments-banks-will-add-competition-force-others-to-be-cheaper-dhirendra-kumar-value-research"}}" data-authors="[" "]" data-category-name="Industry" data-category_id="18" data-date="2015-08-24" data-index="article_1">
首席执行官:Dhirendra库马尔,价值研究
上周,央行行长 Raghuram Rajan宣布11实体的名称将被允许开始付款银行。与现有的银行相比,这些成员是不同的实体。与电信公司、邮局和在线支付服务提供商,显然印度央行相信它已经找到了一种方法来增加竞争和扩大的零售银行业务。鼓励这个声明,就像鼓励是Rajan承诺支付的银行牌照将水龙头。
在过去的二十年里,印度私人银行获得巨额回报甚至最低限度比公共部门树懒。大量的支付银行的未来肯定会增加竞争,迫使每个人都更便宜和更好的。现有的印度的银行可以与更多的创新和技术上的竞争精明的组织。而银行实现标准的技术解决方案,没有out-ofthe-box思考解决实际的客户问题。
此外,私人银行服务收费太多。他们还挖客户最低余额处罚,尽管高最低余额水平。银行也有可怕的记录销售不合适和不合适保险和曼氏金融产品。
是合理的期望,随着竞争的加剧,银行将被迫收取更低的费用和罚款,不选择顾客的口袋在每一个机会,和通常表现得更好。但这些事情发生的由于付款银行的未来吗?他们可以,但前提是印度央行做得更好保护消费者的利益。
例如,没有印度央行意识到银行做什么当他们卖给第三方储蓄和保险产品,新付款银行可能更糟的是罪犯。因为它们是拒之门外的有利可图的业务提供高息贷款,并将,因此,小得多的传播,他们很有可能从non-fund企业压力维持更高的利润率。它会难过如果新银行最终复制相同的旧银行的不良行为。
我知道理论是竞争将照顾这些问题,但是你必须问如何竞争将使客户受益。观察消费者表现与其他企业在近几十年发生了巨大的变化,竞争的优势积累客户只有当他们可以切换从一个供应商到另一个地方。
企业没有粘性,像航空公司的客户受益最多。移动电话是一个有趣的例子,因为它从高客户锁定一个客户可以数字移植到其他供应商。多达十万的手机移植请求每月接收。即使许多人不实际执行了,他们是一个强大的工具为客户。
如果央行真的想创新给银行客户带来竞争的好处,它应该工作办法提供简单和无痛的银行账户可移植性。当然,每个银行家世界上宣告这个想法是不可能的,完全不可行,但应被视为一个投认真思考这个问题。如果印度银行要善待客户,然后他们必须担心老客户,不仅仅是竞争对手获取新的、低价值客户。银行账户可移植性将是一个伟大的武器在客户手中让银行工作。
还有一个问题支付银行的想法,那就是所有的存款和政府将被捕获的浮动。,法定流动比率(SLR)对银行是一种金融抑制,政府抓住了四分之一的钱与银行保存。与付款银行,它将捕捉全部金额,导致一个更小的比例的资金被用于对私营企业的贷款。一个怀疑这是唯一的解决方案,以确保安全与支付银行的资金。
不管怎样支付银行是一个好主意,这样做的缺点远大于优点。
上周,央行行长 Raghuram Rajan宣布11实体的名称将被允许开始付款银行。与现有的银行相比,这些成员是不同的实体。与电信公司、邮局和在线支付服务提供商,显然印度央行相信它已经找到了一种方法来增加竞争和扩大的零售银行业务。鼓励这个声明,就像鼓励是Rajan承诺支付的银行牌照将水龙头。
在过去的二十年里,印度私人银行获得巨额回报甚至最低限度比公共部门树懒。大量的支付银行的未来肯定会增加竞争,迫使每个人都更便宜和更好的。现有的印度的银行可以与更多的创新和技术上的竞争精明的组织。而银行实现标准的技术解决方案,没有out-ofthe-box思考解决实际的客户问题。
此外,私人银行服务收费太多。他们还挖客户最低余额处罚,尽管高最低余额水平。银行也有可怕的记录销售不合适和不合适保险和曼氏金融产品。
是合理的期望,随着竞争的加剧,银行将被迫收取更低的费用和罚款,不选择顾客的口袋在每一个机会,和通常表现得更好。但这些事情发生的由于付款银行的未来吗?他们可以,但前提是印度央行做得更好保护消费者的利益。
例如,没有印度央行意识到银行做什么当他们卖给第三方储蓄和保险产品,新付款银行可能更糟的是罪犯。因为它们是拒之门外的有利可图的业务提供高息贷款,并将,因此,小得多的传播,他们很有可能从non-fund企业压力维持更高的利润率。它会难过如果新银行最终复制相同的旧银行的不良行为。
我知道理论是竞争将照顾这些问题,但是你必须问如何竞争将使客户受益。观察消费者表现与其他企业在近几十年发生了巨大的变化,竞争的优势积累客户只有当他们可以切换从一个供应商到另一个地方。
企业没有粘性,像航空公司的客户受益最多。移动电话是一个有趣的例子,因为它从高客户锁定一个客户可以数字移植到其他供应商。多达十万的手机移植请求每月接收。即使许多人不实际执行了,他们是一个强大的工具为客户。
如果央行真的想创新给银行客户带来竞争的好处,它应该工作办法提供简单和无痛的银行账户可移植性。当然,每个银行家世界上宣告这个想法是不可能的,完全不可行,但应被视为一个投认真思考这个问题。如果印度银行要善待客户,然后他们必须担心老客户,不仅仅是竞争对手获取新的、低价值客户。银行账户可移植性将是一个伟大的武器在客户手中让银行工作。
还有一个问题支付银行的想法,那就是所有的存款和政府将被捕获的浮动。,法定流动比率(SLR)对银行是一种金融抑制,政府抓住了四分之一的钱与银行保存。与付款银行,它将捕捉全部金额,导致一个更小的比例的资金被用于对私营企业的贷款。一个怀疑这是唯一的解决方案,以确保安全与支付银行的资金。
不管怎样支付银行是一个好主意,这样做的缺点远大于优点。
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