#fintech firms

IPO-bound fintech firm Mobikwik became profitable in the December 2021 quarter and expects to close the current financial year with almost two times growth in revenue, a top company official has said.

Mobikwik co-founder and Chief Operating Officer Upasana Taku told PTI that the company recorded profit of around Rs 7 crore in the third quarter of 2021-22, after losing money in the first and second quarters.

"In the last quarter, the company achieved profitability for the first time. We expect to be profitable in the fourth quarter as well. We expect our full financial year (FY) of 2022-23 to be profitable.

"This really validates our theory and the message that we have been giving that it is possible in the Indian fintech space to build a fast pace growth model while at the same time make money," Taku said.

Fintech platform BharatPe on Thursday removed Ashneer Grover's profile and photo from its website after the company accused him, along with his wife Madhuri Jain, of allegedly engaged in extensive misappropriation of company funds and grossly abusing company money to fund their lavish lifestyles.

The About Us page on the website now carries the names of Shashvat Nakrani, Co-Founder, Suhail Sameer, Chief Executive Officer, Bhavik Koladiya, another Co-founder and Nishit Sharma, Chief Revenue Officer, along with other senior executives.

However, Grover's LinkedIn page still shows him as a co-founder and Managing Director of BharatPe.

Along with BharatPe, Unity Small Finance Bank, which is a joint venture between BharatPe and the Centrum Group, has also removed his profile from its portal.

Grover on Tuesday midnight quit BharatPe in a dramatic fashion, amid serious allegations of financial wrongdoings against him and his wife.

Current Affairs

A panel on issues related to financial technology (fintech), in its report submitted to Finance Minister Nirmala Sitharaman on Monday, has recommended a new legal framework for consumer protection.

The framework encompasses fintech and digital services, a National Digital Land Records Mission, a unified database (stacks) for small industries and the agriculture sector, removing discriminatory regulatory barriers in digital payments infrastructure, and allowing non-banking financial companies (NBFCs) into agriculture credit.

The Steering Committee on fintech-related issues has also suggested cash flow-based financing for micro, small and medium enterprises (MSMEs); using drones and remote sensing to assess risk in agriculture credit and insurance; increasing the use of artificial intelligence among state-owned banks; and regulatory and legislative changes to enable fixed deposits and other financial instruments to be issued in dematerialised form and allowing their frictionless use as collateral.

Several proposals in the report are in line with the government’s intention to create and maintain central databases for different sectors. A similar proposal was put up in the recently proposed national digital health blueprint, to create a HealthStack. The panel also recommends using blockchain, which was also one of the main suggestions of a committee on digital currency. The fintech panel was announced by former finance minister Arun Jaitley in his 2018-19 Budget.

Fintech committee recommends new legal framework for consumer protection

The UK fintech industry has been a forerunner of the financial services revolution and has become a hub for new firms looking to take a different approach to the age-old model operated by big banks and financial institutions. But why has UK fintech been successful and can it keep up the momentum? “You have to, to serve these markets, reimagine how money can be managed and moved because there’s going to be more change in the next five years in financial services than what has happened in the past 30,” said PayPal chief executive, Dan Schulman in a statement.

Read the full article @ http://www.boscalicious.co.uk/here-is-the-reason-why-fintech-is-spearheading-uks-financial-sector/