Spice Money: Industry Monitoring 16 to 18 March 2019
- Priyanka Kanodia
- Mar 18, 2019
- 3 min read
Spice Money
Competitors
Got RBI nod for Gruh Finance merger: Bandhan Bank
Publication- SME Times
Edition- Online
Date- 16 March, 2019
Bandhan Bank on Friday said it has received "no objection" from the Reserve Bank of India (RBI) for the proposed merger of Gruh Finance with it. "...we would like to inform that the Reserve Bank has by its letter dated March 14, 2019 conveyed its no objection for the voluntary amalgamation of Gruh Finance Ltd into and with Bandhan Bank, subject to compliance with the terms and conditions therein," the lender said in a regulatory filing. In January, the city-headquartered Bandhan Bank said its board of directors had approved merger of the India's leading housing finance company, with a focus on the affordable housing segment, into the bank.
The merger would help the bank to achieve product and geographic diversification while improving penetration in its core customer segment. On the other hand, the housing finance company would get access to a wider distribution network, a larger customer base and low cost deposit base of the bank. Post-merger, the shareholding of Bandhan Financial Holdings Ltd in the bank would reduce from 82.3 per cent to 61 per cent.The share exchange ratio accepted by the boards of two entities was 568 equity shares of face value of Rs10 each of Bandhan Bank to be issued for every 1,000 equity shares of face value of Rs.2 each of Gruh.
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Industry News
These are the four transformations payments providers must undergo to survive digitization
Publication- Business Insider
Edition- Online
Date- 16 March, 2019
This shift has created a greenfield opportunity in the space. Legacy providers are working to leverage their scale as they update their infrastructure and adapt their business models. But at the same time, upstarts are using their strengths in user experience to try to disintermediate or beat out those at the forefront of the space - a dichotomy that's creating crowding and competition. Digitization and crowding in the payments space will force companies that want to emerge atop the ecosystem to undergo four critical digital transformations: diversification, consolidation and collaboration, data protection, and automation.
Those that do this effectively, and use these shifts as a means of achieving scale without eroding the user experience, will be in the best position to use ongoing digitization in their payments space to their advantage. In The Future Of Payments 2018, Business Insider Intelligence takes a look at some of the biggest problems digitization and crowding are causing for payments firms, outlines the key transformations players can make going forward to resolve them, and explores areas where firms have already begun to use these transformations to their advantage.
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GooglePay looks to bring kirana store customers on its platform
Publication- The Economic Times
Edition- Online
Date- 18 March, 2019
After peer-to-peer (P2P) and bill payments, Google Pay is looking to win over customers of smaller offline retailers or kirana stores. While Google had announced plans to partner with point-of-sale providers to onboard retail merchants, it is now piloting transactions based on the Unified Payments Interface (UPI) to be made by consumers while making offline purchases, according to two people aware of the matter. “It will bring the convenience of card payments onto the smart phone—the only thing required here will be, instead of the card swipe, customers will have to share the mobile number at the billing counter,” said a top payment executive aware of the matter.
Consumers will get a ‘collect’ request on their Google Pay application and make the payment by inserting the UPI PIN. Having emerged as one of the top three payment applications on UPI thanks to P2P and bill payments, Google’s offline strategy is designed to create an ecosystem of payment solutions for Indian consumers. For the technology giant, which is aiming to connect the Next Billion Users to the internet, India is a key market. By leveraging payments, the company is targeting a big chunk of the consumer-retail interface. “There are small-scale pilots that are being run across retail stores in the country. As of now there are no banner advertisements that are being done, only early adopters can test the product,” said one of the persons cited above. “The rollout will happen over the next few months.”
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