Banks Fight Back: Reclaiming Share from Fintechs

Banks are stepping up their competitive efforts against fintech firms, aiming to recapture market share in key financial services. Amitabh Chaudhry, MD & CEO of Axis Bank, highlighted that lenders possess the scale, capital, and patience to invest aggressively, ensuring it's not a one-way competition.

Chaudhry acknowledged that fintechs have successfully captured significant market share, particularly in areas like brokerage. However, he noted that banks are closely monitoring these gains and are prepared to make sustained investments to counter the trend and regain their position.

He indicated that while fintechs can be nimble and sometimes deploy more capital due to investor backing, banks' enduring presence in attractive financial markets is assured. Chaudhry suggested that only a select few banks, approximately five to seven, possess the capacity for consistent, long-term investment in this evolving landscape.