The Indian banking system is a melting pot of paradoxes. On the one hand, we have emerging technologies, like AI/ML and Blockchain, changing the face of the game dramatically. On the other, we have 20% of India’s population unbanked and yet to experience the benefits of the saved rupee. Government intervention can only do so much to elevate the quality of banking in a country of 1 billion. The rise of India’s dynamic FinTech sector can be the much-needed breakthrough, connecting the dots and bridging the gap between banks and the Indian public.
Wealth distribution is a problem unique to India. This is unlike the developed West, where it is likely uniform, regardless of where you look. Wealth distribution is just one of the many ways in which the Indian banking system differs from the rest of the world. There are other issues as well – lack of digitization and modernization, legacy issues, financial inclusion, and so on.