Financial, banking and insurance industries are the major money rotational sources in our country. Through each individual has its own channel and set of customers, coming to the revenue-generating aspects, all the three are interlinked with each other and Considering the advantages in all three sectors, merger deal between the three industries will yield good results says business Astrologer and Astro strategist, Hirav Shah.
What is merging?
A merger is an official agreement between two or more existing companies/platforms to develop into a brand new entity to expand the reach and gain more value in the market. The consolidation of various entities usually happens with a strategic plan to throw a tough challenge to the other leading companies/organizations in the market.
Financial services are the economic services provided by the finance industry which is a collaboration of a broad range of businesses that manage money inflows, banks, credit card companies and government and individual sponsored units.
The banking industry is a medium which Handle’s all financial transactions including cash, credit and provides security for cash and property.
Banks even offer savings accounts to the customers and collect cash which will be used to give loans to other customers.
Made up of a set of companies, the Insurance industry offers risk management in the form of insurance contracts. The basic theme of insurance is that if any uncertain incident happens in the future, it will guarantee payment for the policyholder or his family, who act as the nominee for the policy.
The financial, banking and insurance industries in India
Often referred to as a diversified sector, the financial industry is undergoing massive expansion in the form of strong growth of existing financial services firms and new entities venturing into the market.
The sector is a joint collection of insurance companies, commercial banks, non-banking financial companies, co-operatives, pension and mutual funds among other financial entities.
A new type of entities like payment banks came into usage recently with which the rapid growth is being seen in the sector. The government of India in association with the Reserve Bank of India announced financial access to Micro, small and medium enterprises.
The launch of Credit Guarantee Fund Scheme for the small and medium businesses and setting up a Micro Units Development and Refinance Agency is also yielding fruitful results, says Hirav Shah
The market in India
As per the recent data, the Mutual Fund industry’s assets saw a huge spike from ₹10.96 lakh crore in 2014 to approximately ₹28 lakh crore in 2020.
By the end of 2019, the equity mutual funds registered a net inflow of ₹8.04 trillion which is also a big boost up for the sector
The Initial Public Offers ( IPO’s) has witnessed a rapid expansion due to which the inflow saw a hike of 2.5 billion dollars across seventeen IPOs.
Last but not least, the Bombay Stock Exchange ( BSE) is gearing up to join forces with Ebix Inc to build a robust insurance network across our country through a new distribution exchange platform.
Investments and recent developments
In 2020, Axis Bank acquired an additional 29% stake in Max Life Insurance. In the same year, the National Payments Corporation of India ( NPCL) has launched an international arm to develop digital payment products such as Rupay and UPI services globally.
In September 2020, the People’s Bank of China made an equity investment in Bajaj Finance to acquire less than 1%. In March 2020, ClearTax, an online tax filing platform, acquired GST software and services business for a whopping amount from Karvy Data Management Services.
As per 2019 data, from various mergers and acquisitions registered approximately 26 billion dollars and the amount has been seeing continued hike in the next financial years.
The October 2020 Unified Payments Interface ( UPI) has witnessed more than 2 billion transactions worth of 52.10 billion dollars, says an authentic report.
How about a merger deal between financial, banking and insurance industries?
As all the three sectors banking, financial and insurance are interlinked with each in terms of financial transactions and digitalization aspects, going ahead with an official merger deal between the three massive revenue-generating sectors will emerge as a game-changer in various ways, opinions Hirav Shah
Considering the above-provided data, a merger deal between three mainstream service providers such as financial, banking and insurance industries is a path-breaking deal and will surely emerge as a successful new platform. But before going ahead with the merger idea, approaching an Astrologer who has crystal clear data about all the three industries and to get authentic and genuine information helps as a guiding force, concludes Hirav Shah