ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • AMC Sector: Growth-oriented funds lead the strong inflows in sector, says BK Securities – check key triggers
  • Q1FY23 Preview: Pharmaceutical firms likely to deliver subdued performance in domestic market, says Nirmal Bang
  • Chemical sector may report growth in operating profit both sequentially and YoY in Q1FY23 – Check details here
  • Finance Ministry empanels 12 transaction advisers for assisting in implementation of Public Private Partnership projects
  • Stock market on Monday: Market may continue its volatile trade, believes Anil Singhvi - crude, rupee movement key monitorable
Read in App
Business News » India News

Technology giants have no business in banking: Kotak

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App

Banker Uday Kotak opined that technology majors like Google and Facebook should not be allowed to become banks as they don't like to be regulated.

He said banking is a business with a high degree of leverage involving public trust and continues to be synonymous with safety.

"If a Google or a Facebook ever decided to be a bank, we have a problem...They don't want to be as regulated as we are," Kotak, who heads Kotak Mahindra Bank said while speaking at the annual Nasscom leadership summit here Wednesday.

The comments come amid an aggressive play and keen interest by the global tech giants like Google with its payment platform Google Pay in the domestic financial sector, especially through payment services offerings.

Kotak said banks work at a leverage of 10:1 wherein they lend out Rs 10 for every rupee of capital which they have. It is a high risk business, but perceived to be safe, Kotak said, stressing banks have "no choice" but to manage the risks well.

He also hinted that young people are a bit adventurous with their investments and often put money into risky bets.

But fortunately, a large pot of money is with the old people who allocate the resources very judiciously.

Kotak advised young fintech players and startups to enter the fray assuming that they will fail, as 99 percent of new entities fail.

Stating that banks and other entrenched financial services players should not be complacent in facing competition by young companies out to disrupt the game, he said within a week of demonetisation, a "relatively unknown" company became a common place across the masses, hinting at Paytm.

"It shook us out of our slumber," he said, adding this had the his bank soon launching the 8/11 account opening drive which gave it good business as it helped address the opportunities in the mass segment from the earlier mass premium segment.

Kotak also sounded peeved at the high cost of accessing IT services, exhorting software players to offer services at lower cost and said they need to offer services at 1-2 percent of the cost they are charging now.

He also rued that while the country has made a name for itself rendering software services to the world, there have not been enough product companies, resulting in multinationals to make a lot money.

 

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
Updated: Wed, Feb 20, 2019
09:00 pm
PTI
RELATED NEWS
Crisil cuts FY23 GDP growth estimate to 7.3% Crisil cuts FY23 GDP growth estimate to 7.3%
US stocks see worst first half drop in over 50 years US stocks see worst first half drop in over 50 years
Rupee hits record low of 79.11 against US dollar in early trade Rupee hits record low of 79.11 against US dollar in early trade
Retail inflation for industrial workers rises to 6.97% in May Retail inflation for industrial workers rises to 6.97% in May
GST Council Meeting: Full details of goods and services, where rates hiked or slashed GST Council Meeting: Full details of goods and services, where rates hiked or slashed

LATEST NEWS

Rakesh Jhunjhunwala Stocks: Agrochemical firm Rallis India shares may surge by 23% despite pressure on margins – Here’s why?

YouTube's new tools to combat comment spam, account imitators

Why is the rupee falling? Zee Business reveals reasons

AMC Sector: Growth-oriented funds lead the strong inflows, says BK Securities – check key triggers

Chemical sector may report growth in operating profit both sequentially and YoY in Q1FY23 – Check details here

Finance Ministry empanels 12 transaction advisers for assisting in implementation of Public Private Partnership projects

Stock market on Monday: Market may continue its volatile trade, believes Anil Singhvi - crude, rupee movement key monitorable

Q1FY23 Preview: Pharmaceutical firms likely to deliver subdued performance in domestic market, says Nirmal Bang -

Cigarette makers shifted to biodegradable overwrap on packets, well ahead of plastic ban

Gold Price Today: Investors with short term view must book profits now; import duty hike, rupee weakness may arrest price correction, temporarily

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV