September 10, 2021India
New FinTech Companies are racing to replace old banks. Is it possible?
According to reports, the existing FinTech firms in India have earned one-third of new revenue at the detriment of traditional banks. Also, there are various sectors in the Indian FinTech scope, giving clarifications in distinct financial areas such as digital payments, wealth management, insurance, peer-to-peer lending et cetera. Apart from the payments business, to which the FinTech companies owe its beginning, these have tremendous growth opportunities. Hence, just like conventional start-ups, for professionals operating in the fintech segment, EBITDA or profitability is not always the factor, but being in a sector that has an addressable market.
Depending on the various sectors of the companies like payments, lending, investments et cetera, the perfect way will be to evaluate these businesses on a SOTP (Sum Of The Parts) method, for businesses having different awards and risks. From a payments business to a lending marketplace, we can see all sorts of FinTechs across regions moving towards acquiring a banking license.
