Prabhu Rangarajan is the co-founder and chief operating officer of M2P Fintech, a company that is changing the world with its innovative and winning financial solutions. M2P Fintech provides a digital infrastructure that enables banks, lenders, fintechs and other financial services players to offer seamless and personalised experiences to their customers.
In this interview, Prabhu shares his insights on the vision, journey and future plans of M2P Fintech, as well as the mega trends that are reshaping the fintech sector in the post-pandemic era.
The vision behind M2P Fintech
Prabhu says that he and his co-founders, Madhusudanan R and Muthukumar R, saw a huge gap between the tech offerings of banks and the market needs of brands to cater to their customers. They decided to bridge this gap by enabling banks to become nimbler and offer APIs (application programming interface) to set brands on their product journey.
“Moving forward, we built exhaustive, in-house tech capabilities, diversified our product offering across segments. We work with banks, NBFCs (non-banking financial companies), financial institutions to digitise their tech layer across banking, lending and payments landscapes and, on the other end, we work with consumer internet and large tech companies across verticals ranging from food tech, regtech (regulatory technology), travel and more,” he says.
Today, M2P Fintech has a client base that spans over 300 banks, 100 NBFCs, and more than 800 fintechs. It powers a large percentage of fintech transactions in India and has a direct presence in 27 markets worldwide.
The trends shaping the fintech industry
Prabhu says that the post-pandemic era is truly the digital era with transformations across industries at a rapid pace and fintech is no different. He identifies some of the mega trends that are driving the fintech sector:
- Digital rupee: Prabhu says that the introduction of a central bank digital currency (CBDC) by the Reserve Bank of India will have a significant impact on the fintech ecosystem. “A CBDC will enable faster, cheaper and more secure transactions for both individuals and businesses. It will also create new opportunities for innovation and inclusion in the digital economy,” he says.
- Robo advisors: Prabhu says that robo advisors are becoming more popular as they offer personalised financial advice based on data analytics and algorithms. “Robo advisors can help customers make better investment decisions, optimise their portfolios and achieve their financial goals. They can also reduce the cost and complexity of financial planning,” he says.
- Personalised banking: Prabhu says that personalised banking is the future of customer engagement in the fintech sector. “Personalised banking is about offering tailored products and services to customers based on their preferences, behaviour and needs. It is about creating a unique value proposition for each customer and delivering it through an omnichannel experience,” he says.
- Data analytics: Prabhu says that data analytics is the key to unlocking new insights and opportunities in the fintech sector. “Data analytics can help fintech players understand their customers better, improve their products and services, enhance their risk management and compliance, and drive innovation and growth,” he says.
- Regtech: Prabhu says that regtech is an emerging domain that leverages technology to simplify and streamline regulatory processes for fintech players. “Regtech can help fintech players comply with complex and evolving regulations, reduce operational costs and risks, improve transparency and accountability, and enhance customer trust,” he says.
The future plans of M2P Fintech
Prabhu says that M2P Fintech is not just growing but “revolutionising the way financial transactions are understood and optimised”. He says that the company has achieved ‘break-even’ in 2023, and expects to continue fund-raising to accelerate its ambitions across international markets and to widen its product suite.
The company, which is backed by marquee investors like Tiger Global Management and Omidyar Network, also sees Amazon Web Services (AWS) as more than a service provider, much like a partner in its mission to build sustainable financial infrastructure.
“When it comes to our products, incorporating the latest yet relevant and scalable technology is at the heart of everything we do,” he says.
Prabhu says that he is happy to work with great people and believes that if start-ups focus on becoming profitable right from the beginning, it will help immensely in their journey. He also leads the employee-first policies of the company and ensures a positive and collaborative work culture.
Prabhu concludes by saying that he is excited about the future of fintech and M2P Fintech’s role in it. “We are on a mission to democratise access to financial services and create a positive impact on millions of lives. We are confident that we have the right team, the right technology and the right vision to make it happen,” he says.