KV Kamath: Chinese Banks Lag Behind Indian Counterparts in Digital Transformation
KV Kamath, the non-executive chairman of Jio Financial Services, recently emphasized India’s enormous growth in digitization and change in the banking sector in comparison to China in an interview at the Global Fintech Fest. An experienced banker with a distinguished career, KV Kamath gave his thoughts on this important development.
India Surpasses China in the Digital Space
Kamath admitted that although China had made significant technological advancements, its banks had not fully embraced the digital age like their Indian counterparts had. He noted that many years ago, Alibaba and Tencent’s Alipay plus WeChat Pay, two payment services in China, had millions of customers and billions of transactions. However, legal restrictions and problems with the public’s perception of Chinese businesses prevented them from expanding internationally.
Indian digital payments, specifically those made through the Unified Payments Interface (UPI), have grown rapidly in comparison. With over 10 billion transactions every month, UPI-based QR payments could pose a threat to international hegemons like Visa as well as MasterCard. Kamath stressed that in terms of technological advancement, Indian banks had surpassed their Chinese counterparts.
The Contribution of UPI to India’s Success
The next important growth of UPI, according to Kamath, is anticipated to come from credit services, which might make small-ticket-sized loans very successful. He also pointed out that despite China’s overall technology advancement, its banks trail Indian institutions in terms of digitalization.
India’s Impressive Digital Progress
At international events like the G20 Summit 2023, Kamath’s encouragement for India’s adoption of technology was on exhibit. According to Ernst & Young, during 2011 and 2019, digitization grew in India at a rate of 11%, which was similar to China’s rate. However, India’s attempts to create the India Stack, a digital public infrastructure, made digital advancement universally accessible and inexpensive.
A public-private partnership called the India Stack made it possible to leverage public data for new apps, the digitization of identity paperwork, payments, management, public services, and other things. With more than 7,460 firms active in the fintech industry, India has a thriving ecosystem and is now the third-largest fintech hub in the world
Affordable Mobile Data in India
The average cost of 1GB of mobile internet data in India is also among the lowest in the world, which contributes to the nation’s digital development. This accessibility has accelerated India’s digital revolution by enabling a large population to use digital services.
The findings of KV Kamath highlight India’s amazing advancements in digitization especially in the banking and fintech industries. India’s advancements in digital adoption have made it a global participant in the digital era, despite the fact that China may have a larger economy. India’s creative strategies and easily accessible digital infrastructure have paved the path for future development and engagement.
‘KV Kamath’ Article By Deby T
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