Several Founders, Co-Founders, CXO Bankers, CXO Fintech professional & people who participated in the ePanel discussions:
- Mr. Fareed Jawad, Vice President – Product development, Spreedly
- Mr. Abhay Kulkarni, Service cloud specialist, Salesforce
- Mr. Anupam Varghese, Chief Tinkerer, Tinkerbee Innovations
- Mr. Ishan Vaish, India Partnership Manager- Worldwide Developer Relations, Apple
- Mr. Arun Tanksali, Co-founder & CTO, Nearex
- Mr. Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
- Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous
Well, there was so much panic & chaos with the YES bank moratorium. Can you just imagine What happens if Google or WhatsApp and other customers facing Fintechs which are not banks decides to shut its business operations in India or any other country? FIAKS community puts forth these questions;
Question 1: Will the government again ask SBI to rescue all the retail customers?
Question 2: Can you imagine the kind of risk we are exposed to?
Here are some responses of the members:
- Firstly, fintech is only intermediaries and are only facilitating transactions. They are not holding customer’s funds. Alternatives will be available to customers. Well, the fact is our problems are more fundamental to governance, competence, and ethics. In any case, all fintech provider’s funds are always with a bank.
- Again, this is an apple to oranges comparison. No doubt that Google and Facebook are serving as lifelines of people but there is no public money at stake. YES Bank moratorium and SBI helping to restructure is to find viable ways to protect people’s funds. It’s to ensure that loans are restructured and recovered and deposits are safely invested.
- A member mentioned that this reminds of the financial recession when he worked in Wall Street in 2008. US government didn’t bail out a few banks but did provide help to GS and some other financial institutions with the same intent.
- Another member says agreed that money is with the bank but which fund belongs to whom that is decided by the software.. right? This software is controlled by Whatapp or Google Pe or other Apps. Imagine billions of rupees of customer money are in the bank account but no technology to reconcile as how much belongs to whom. And you have small balances of Rs 50 to 250 in each account. Will it not lead to chaos?
Now here’s what we need to think upon this concern: REGISTER and READ the complete discussions