Here's How Paytm Is Preparing To Launch Its Payments Bank
With the resolution to launch its payments bank in the second half of this year, Paytm is leaving no stone unturned to make it on time with the right technology in hand. To ensure this, Paytm has partnered with IT services company Wipro for a standardized core-banking system.
Implementing core technology, Wipro will make certain that all accounting and regulatory requirements are met. According to The Financial Express, Wipro will also manage integration of other key systems such as anti-money laundering solution and regulatory reporting solution, and will play a crucial role in helping Paytm interface its existing systems with the core banking solution. Data centers will also be set and managed by Wipro.
Commenting on the cutting-edge technology by Wipro, Shinjini Kumar, CEO designate (Paytm Bank), said, “They (Wipro) have a demonstrated track record in banking technology in India that will be important in ensuring that our innovative solutions are integrated with core banking systems in a compliant and secure manner, creating the right platform for service delivery at large scale. We are a young and agile organization and the Wipro team has demonstrated agility and flexibility that will be necessary to make this partnership meaningful.”
India largest mobile payment system, Paytm has been preparing for the launch of its payments banks for a while putting things in place. An amount of $250 million was set aside by the firm last year for this purpose solely and they plan to recruit around 3,000 people for the new business unit. In March, they had partnered with US-based FIS Global to strengthen its banking technology.
A little different from conventional banks, Payment banks will accept demand deposits and savings bank deposits from individuals and small businesses, up to a maximum of R1 lakh per account. However, they cannot lend money yet. They can also sell mutual funds, insurance and pension products as well as facilitate payments and remittances with a focus on the 'unbanked' segment like migrant workers.
Former Airtel executive, Saurabh Sharma has been hired to head merchant and agent acquisition and Vikas Purohit, who was previously working with Amazon India, will lead banking operations.
Soumitro Ghosh, president, India & Middle East markets, Wipro, said, “Paytm is making steady strides towards its larger vision of financial inclusion in the country. Its payments bank is another step in this direction and we are happy to partner with them in their endeavour.”
The newly appointed chief executive of Paytm's payments, Shinjini, added, "Technology is an integral part of the value proposition we seek to create for customers of our upcoming bank.”