One question..With government opening Jan dhan accounts with zero balance..what is the need to use payment banks for remittance? People can use Google pay or phone pay for money transfers..if they are not tech savvy.. They can find one close person who can help and it's no brainer to do so..so how would this impact finos profits?
Target segment is different right now (not bottom of pyramid n not those who can do it themselves n for them slso there is a b2c app) but with time I believe such needs would shrink (though as of now this segment market expected to grow at 12%) n hence they are increasing new banking offering
Thx for the detailed analysis Suru Bhai. It is not clear what is the moat / differentiator here. That will determine if the business can be easily disrupted or will last long. Also, as you rightly pointed out, once the pot of honey grows, bigger player will attack - not sure how they can defend themselves? Distribution? Lastly, as one of the comment shows, Aam Janta doesn't even understand the business model - so wider participation might get much delayed. Thx for sharing the fruit of your labor freely though - much appreciated 👍
I strongly believe in current disruptive world, moats are way less relevant barring fee exceptional companies (very few in India). Don't see any moat here except distribution + tech stack which can be disrupted by airtel. So, I will keep a tab on execution, growth n charts unless it falters below expectation
