FINTECH CHALLENGE IS A FANTASY

•  The government is poised to launch 73 digital banks soon. 
• Digital Banking Units (DBUs) will be launched.
• DBUs are new way of making available digital products of existing banks and non- banking financial companies (NBFCs).
• DBUs, these outlets where people can avail of banking products mostly of their own. In other words, a DBU can be seen as a branch that operates mostly in a digital mode.

Problems:

• Even a highly literate customer prefers to come to bank to meet many of their banking needs. Then under served areas, people will be able to help themselves to any but the most basic banking products (say deposits)is a stretch.
• DBUs may help grow deposits quickly , but they are unlikely to be able to do much on income side.

DBUs are one way in which digital products can be offered. In this model the digital products stay within the bank. Digital products can be also offered through digital banking subsidiaries or by standalone digital banks.