Piyush Nagar: Governments should have the infrastructure to supervise neobanks

Asreertebat – Piyush is an entrepreneur, visionary, strategist, and director at Sixth Sense IT Solutions who has been in the IT industry for more than 13 years and served more than 3500 clients over the globe. He is well versed in Blockchain, Fintech, IoT, AI, E-commerce, Industry Automation, and eGovernance.

He is a Co-founder of the Fayda app- a blockchain-based loyalty platform, made with a mission to help local shop retailers to compete with e-commerce and sustain local shops.

Apart from these, he is also CTO & investor at Reijiro NEO Banks and support the mission to bank the unback. Reijiro (RJ) Neo Bank is a fintech and financial solution provider, aiming to work for financial inclusion.

In addition he’s also a business coach and professor at Bada Business- an initiative by Dr. Vivek Bindra.

Having 13+ years of experience in IT he is an expert at IT services that are not only affordable but sustainable business solutions.

He initially started his journey with a business portal, which later couldn’t work as expected, because of technology updates and other market conditions. He tried to dig out the reasons and surprisingly found that other startups must be facing the same issues as well.

Then, with a vision to help out startups and  SMEs, he laid down the foundation of SixthSense IT Solutions in 2009, where he started with limited technologies and available resources, and now it has been an amazing journey of 13+ years.

Currently Fayda app have 9819 users and 1,922 Businesses registered with it.

To nurture the backward and underprivileged areas of India with Financial Inclusion, he now started a new journey of banking the unbanked.

He is CTO and a investor at Reijiro NEO banks. By which he is trying to reach every unbanked area of India and answering to India’s Financial Inclusion Goals.

His course for ERP and Technology Implementation in small business on BADA BUSINESS is the highest sold course on the platform.

– What do you think is the perspective of neo-banking? Do you have statistics in this regard? Which countries are leading?

Neobanking is a new concept powered by Fintech wherein all the banking operations happen virtually through tech platforms there will be no need for a physical form of bank.

In 2018, the global neobank sector was worth $18.6 billion, and is estimated to expand at a compounded annual growth rate (CAGR) of about 46.5 percent, generating approximately $394.6 billion by 2026 as per data released by Zion Market Research

Most countries are working on the neo-banking revolution, so it’s difficult to say which country is leading but The Brazilian Nubank was the most valuable digital bank worldwide as of August 2020

– What are the differences between neo-banking and digital banking?

Neobank is an online-only bank with no physical branch and does all the operations on the digital platform only, and Digital banking is a digital extension of the traditional bank which facilitates consumers to do some operations online.

– What are the most important challenges for governments to develop neo-banks? (Information integration and regulation in this area – Awareness of customers and managers – Data security and others?

Regulation in some countries won’t allow the fully digital banks or neo-banks as there are multiple factors related to governance and security.
As the neo-banks manage all the data digitally on cloud infrastructure and have all the services open for consumer on multiple tech platforms so it’s very important to take care of data.
Government must have a suitable infrastructure to monitor and track neobanks operations, which most governments are not having at the moment as it’s quite new and evolving with the time.

– For the development of neo-banks; What steps should the government and relevant agencies take to facilitate and support financial institutions (for example: infrastructure – Internet speed and cost – financing to reduce costs – knowledge and skills, public awareness …)?

Internet and Cybersecurity infrastructure is the first requirement for the neobank so government should work on these first, apart from this awareness is very much important to build the trust amongs the consumer so if government take some initiative to make people aware about neobank, that makes a difference.

– In order to reduce the resistance of banks to this area (for example, employees’ fear of losing their jobs – data or reducing access to their regular customers …), What measures should be taken by governments and the central bank?

Collaboration and associations are the options by which the government can propose to the banks to reduce their resistance, if banks collaborate with neobanks it helps them to get more business, and banks can work as a backend entity for fintech.

– It seems that neo-banks are somehow in conflict with fintechs, what is your opinion on this?

I Don’t think so,  neo-banking is an opportunity for fintech companies to expand their horizon.

– Given that fintechs can be more agile and innovative than traditional banks, they can help accelerate this area. Are there any challenges? And what solutions should be done?
Yes, it’s true fintechs are more agile and innovative which gives them an edge to lead the race and it’s happening but there are some challenges for fintech, fintech are not habitual to working in a very high regulated environment which is very challenging for them.

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