Cut Copy Waste Banking

Wallet frenzy in last couple of years pushed all banks and PPIs into launching their own version of wallets. There was focus on copying the wallet but with no focus on differentiation and market penetration.

Banks had the power of differentiating through access to their products as well as external tie-ups. Wallet features could have built on top of Savings account with blocking of funds for specific wallet. For example, parents could have created kids wallet by allocating their savings funds  (blocking and not debiting)… this is similar as ASBA feature available for IPOs…

Except for couple of banks and PPIs, none could create scalable model and lost money in cut copy waste approach. Infact, there was hardly any marketing muscle behind these initiatives.

With market frenzy happening in the area of lending, Robo Advisory and blockchain, we may see more such challenges… Only this time, the losses would be massive… Lending done without understanding the underwriting algo would recreate the challenges of year 2008.

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