KV Kamath, Chairman of Jio Financial Services, shared a word of caution for fintech companies. Speaking with Kunal Shah, Founder of CRED at the recent at the Moneycontrol Fintech Conclave, Kamath said that many fintechs are “burning money without understanding when to stop”. He warned that what fintechs need to realise is that there is no clear endgame in sight for these companies. “They could have actually stopped the burn despite growing well,” he added, stressing on the importance of financial prudence.
Nithin Kamath emphasized the accelerating pace of change in the financial sector, driven by customers’ increasing demand for convenience. He observed that both established and emerging companies need to be ready for disruptive forces that are reshaping the landscape.
Important to undertand business first rather than mass hiring
Kamath also critiqued the tech industry’s over-hiring, particularly among fintechs, where he noted an overemphasis on engineering talent without sufficient business acumen. “They need to understand business too,” he stated.
Comparing India to China, Kamath highlighted the disparity in technology’s contribution to GDP growth: 35% in China versus less than 5% in India. While acknowledging the importance of India’s established software services companies, he asserted that new-age companies hold the key to the future. He predicted significant growth in India’s technology sector’s GDP contribution within the next 5-7 years. However, Kamath stressed the need for “new discovery companies in technology, not just consumer internet companies,” urging innovation beyond the consumer tech space.
Kamath also stressed that transformation is achievable with the right mindset. He advocated for embedding technology within core business operations, creating a “transformational organization” where every employee understands technology’s role in their daily work.
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