Finding harmony: Fintechs vs. Banks - rivalry or the perfect collaboration?

Axis Bank's MD & CEO, Amitabh Chaudhry, shared his perspectives on the fintech vs. bank debate during a discussion at the Global Fintech Fest on September 6. He offered valuable insights into the evolving financial landscape.

Chaudhry stressed the importance of adaptation, innovation, and partnerships for banks to thrive. While regulations can act as a protective "moat," he cautioned that their effectiveness has a shelf life.

Recognizing the competitive challenge posed by fintech, Chaudhry highlighted the key ability of fintech firms, 'to blend innovation with financial products precisely tailored to customer needs'.

Notably, Chaudhry pointed out a shift in fintech strategies following regulatory changes by the Reserve Bank of India. Fintechs have come to realize that regulations are not roadblocks but integral to their operational models.

Today, compliance and regulations play starring roles in fintech business models. Fintech firms are swiftly adapting to align with these requirements, recognizing that long-term viability hinges on compliance.

In this evolving landscape, traditional banks have an opportunity to leverage fintech strengths while embracing regulatory compliance. Chaudhry underscored that fintechs could be partners, rivals, or even strategic collaborators.

As the fintech vs. bank debate continues to shape the financial industry's future, Chaudhry's insights illuminate a path forward, where adaptation and innovation coexist with regulatory adherence, defining the contours of tomorrow's financial world.