Sameer Mahandru Explains Why Strategic Fintech Alliances Are No Longer Optional for Legacy Banks
Sameer Mahandru, a prominent entrepreneur in the AlcoBev sector, decodes this change and provides insight into why traditional banks must embrace fintech partnerships to stay competitive in the rapidly evolving digital-first era.
The fintech sector emerged as a powerful disruptor in India, changing the way finances were handled by the common man and businesses. The innovation and transformation echoed through many sectors at an unprecedented pace.
The swift and exceptionally quick adoption of fintech in India suggests that the disruption within the banking sector could be equally transformative. It would not be wrong to assume that the impact on the banking sector may be even more substantial than previously anticipated.
Fintech companies in India are experiencing significantly higher revenue growth in comparison to traditional banks.
The Indian fintech market is expected to grow at a CAGR of 30.55% from 2025 to 2030, achieving a market size of USD 550.21 billion by 2030, which will be an increase from USD 145.09 billion in 2025.
According to a report by Boston Consulting Group (Future of Finance), the fastest-growing organisations are the ones that are most digitally savvy, as digital attacker banks achieved 85-100% CAGR in revenue in the last 5 years. While in the same period traditional banks were able to achieve a meagre 10-15% CAGR.
Sameer Mahandru believes that the fintech companies are achieving much higher annual revenue growth rates because they are able to constantly innovate, leverage digital-first business models, and address the needs of customers with agility.
The tech-focused solutions have given them the ability to capture new market segments and respond swiftly to changing demands, which has resulted in growth that is significantly more than that of incumbent banks.
On the other hand, private credit and non-bank lenders are also rapidly expanding their role in India’s financial ecosystem by addressing gaps that traditional banks and NBFCs have been unable or unwilling to fill.
In 2024, direct lending accounted for over 75% of the total capital raised exceeding USD 150 billion. At the same time, private placement issuance volumes by private sector non-financial borrowers reached nearly INR 2 lakh crore (approximately USD 23 billion) for the first time.
Fintech platforms are partnering with digital lending platforms to manage loans, streamline due diligence, and improve borrower access.
The digital-first approach has made it easier for private credit providers to reach underserved segments and offer customised financing solutions. Sameer Mahandru opines that the synergy between fintech and private credit is expected to deepen as both sectors benefit from digital innovation.
With so many factors at play, what can traditional banks do to get their revenues soaring?
Mahandru believes that banks should not view fintech as a competitor but more like an ally who can help in unlocking new markets that were otherwise out of reach and introduce products that are not only innovative but also tailored to the needs of the customers.
By leveraging the technological agility of the fintech sector, banks can do away with cumbersome procedures and enhance efficiency.
Personalisation and customer service are where the fintech sector has made its mark, and this is what the traditional banks need. Gone are the days of visiting physical banks and carrying stacks of documents to avail any service; today’s generation wants it now and expects seamless services at their fingertips. Says Mahandru.
These collaborations will not only enable banks to reach underserved segments and improve risk management through advanced analytics but also inculcate a culture of innovation that helps banks stay ahead of market trends and regulatory changes.
The post Sameer Mahandru Explains Why Strategic Fintech Alliances Are No Longer Optional for Legacy Banks appeared first on Daily Excelsior.
News