Challenges for PAYMENT BANKS

I am coming here with an another article related to PAYMENT BANK's. And how banking is challenging to them.

Earlier I discussed about how payment banks will competitor with normal banks.

Now I explaining how they will change banking system.
I am not going through interior part of RBI guidelines. Out of 11 only 8 will function/ functioning. 3 cholamandalam, Dilip shanitilal shanhvi (Manappuram) & tech Mahendra Ltd withdraw. so 8 1) Aditya Birla nuva Ltd, 2) airtel m commerce service Ltd, 3) postal depot 4) fino paytech Ltd 5) NSDL 6) Reliance industries Ltd 7) Vijay Shekhar Sharma (Paytm) 8) Vodafone m pesa Ltd. Are in race.

Here I noted another point some micro finance companies apply for private bank licence 1) Bajaj fin serv 2)m&m fin serv 3) tata capital 4) India bulls hsg.

Here some technical issues for your consideration.
Fino paytech Ltd has tie with ICICI, NSDL with IDBI, reliance with SBI.AB nuva with idea.

Some questions will arises 1) why big jambavan TATA not in payment bank?
2) why tech Mahendra, cholamandalam & Manappuram withdraw?

You just think in the way of THANI ORUVAN style. tata & m&m applied and awaited for bank licence, cholamandalam & manpuram already in NBFCs so will apply for bank in future.

I heard from some where but can't remember "India is poorest country then why are you eager to do business?"answer is " India is a biggest Market place".

Who occupied most of these market just think....
It is nothing but our telecom most of us having it not only have but OWN.

I started with AB NUVA with idea. Idea is on the great communication networks in our country. AB also owned many retail shops and company with trusted customers but the issue is reaching customers with potential.

Next one is AIRTEL already started. they having enormous No of customers with 24*7 customer support. They already rehearsal with airtel money. But not a big deal in banking. Many outlet of airtel haven't proper KYC details. Migrant people is the problem.

Postal is a new venture they came with rural people's help. but biggest challenge is know how's and implementation.

Fino paytech with icici fino having good opportunity to learn entire banking with wealth management from ICICI. No problem with technology. But accessing middle and low class people's need.

NSDL with IDBI. NSDL is expertise in demat, depository and repository just record keeping. But banking is new to them. Technology wise one of the great venture. Very clean KYC.

RIL with SBI. RIL got permission from RBI and introduced JIO offer with PAKKA KYC compliance with Aadhaar provide free internet for mar 31st.now they are the fastest growing telecom sector. Beat whatup also. Sbi also has high no of customers and big team of  KNOW HOWs and technology knowledge. Very easy to reach customers with 3rd party products other than banking. JIO clouds are clear only after RIL withdrawn the DATA pack.not predictable wait and watch.

Paytm already reached small shops what we seeing in every day news paper. The invest huge amount for that.

Vodafone is the only company will effect trouble if same scenario going on (jio fear).

So all companies without help of bank will suffer initially.but will recover with KNOWHOWs.
Customer support is another issue becoz finance is the one of the sensitive area of people.

Service charges which is initially less but it will increase further. This will panic among people.

Traditional will not broken in one night but time consumable. The sustainable development will needed. Any small mistake or unrealised trust  will a loop hole of payment bank business.

KYC may be a big problem other than JIO & NSDL.

The retail outlet trust is biggest question mark.

Implementation and advertising problem. If all of the above company resolve the problem what PSU banks faced past will be shorted otherwise complex.