Will Khatabook be India’s Google or Whatsapp moment?
Local Kirana stores (also termed as Mom and Pop Stores) in India are witnessing a major shift in the trade. Digitization wave has reached these Kirana stores too, and Digital Kirana is becoming the next big thing. One of the common problems faced by these Kirana stores is bookkeeping and account management. Khatabook is a toddler in the bookkeeping space which, has seen phenomenal success. So far, Khatabook has scaled to transactions of $200mn per day, that too in less than 2 years of operation. Let’s look at the business story of Khatabook.
The Backdrop of Digital Kirana
Continue reading Will Khatabook be India’s Digital Bahi khata?
Story of an Investment bank foraying into consumer banking
Goldman Sachs (GS) recently published their Q4 numbers. The numbers were beyond expectations. Though, one thing that caught my attention was their consumer banking offering, Marcus. Within its first five years it has already had four million-plus deposit accounts. They have crossed $97 billion in deposits. It is fascinating to see a 150-year-old investment bank enter in digital/new age banking space and make a mark (or should I say make a Marcus). The real question being why would an established player like Goldman Sachs foray into consumer banking.
Goldman Sachs – The 150-year-old legacy
Marcus Goldman started Goldman Sachs in 1869. Goldman was later joined by his son-in-law, Samuel Sachs. Goldman Sachs majorly focused on corporate investments, securities, and investment banking. The company saw multiple economic recessions during its tenure and survived them too. However, the 2008 financial crisis was different. Goldman Sachs sold a large portion of bad mortgages by hiding facts behind these mortgage-backed securities. This put a dent in their reputation. Goldman Sachs lost the trustworthiness they had gained over the years. For a brief duration, there was a possibility of GS possibly declaring bankruptcy too. They were penalized with a fine of $5 billion for their wrongdoings during the financial crisis.
Continue reading Marcus – A startup with 150 years of experience
An Indian enterprise leading by example in the Fintech space
When it comes to Financial deals, New York and London are the torchbearers. India and China, are considered leaders in Fintech innovation. Fintech has evolved basis some good innovation in the private sector in India. In the payment and Fintech space in India, NPCI (National Payment Corporation of India), a government initiative is showcasing a story of innovation and collaboration between private and public players. Their success stories of UPI, RuPay, and eNACH have been monitored closely by the world with high regard. Despite being well known across the globe, NPCI does not have enough recognition in India. Let’s look at the story of NPCI and how its products are changing the payment landscape.
The early 90s and India’s cash-based economy
Indian payment infrastructure was all managed by the Reserve bank of India (RBI) in the late 90s. In that era, most transactions were cash-based. There were a few exceptions like electronic modes of transfers like cheques, DD, etc. For a rapidly growing economy, payment settlement mechanism cannot be brittle. RBI introduced measures to address scalability challenges.
Continue reading NPCI – Unsung Hero of India’s Fintech revolution