Public sector banks develop new products to cater to diverse customer needs and stay competitive in the market. These products target underserved regions and sectors. Plus, they also drive financial inclusion and addressing the gaps in credit access. Offering these features helps banks retain customers while attracting new ones.
Increased competition from these banks pushes Fintech companies to improve their services and expand offerings. The resulting rivalry ends up boosting service quality and benefitting customers. The overall balance between public sector banks and Fintechs creates a balanced and innovative system.
