Fintech regulations to help those who follow rules: QED’s Nigel Morris

economictimes.indiatimes.com:

How RBI is upping the scrutiny on credit cardsIncreased regulation in the Indian fintech sector will significantly benefit the industry by driving away bad actors and enhancing the competitive advantage of those who abide by the rules, said Nigel Morris, managing partner, QED Investors.

In an exclusive interview to ET, he said that the recent clampdown by India’s central bank on various segments of new-age financial services was a move in the right direction and that it did not deter investors with vast operating experience such as his firm from betting on Indian fintechs.

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QED Investors’ portfolio firms such as OneCard and Jupiter have been impacted by new regulations in the co-branded credit card segment. In March, Federal Bank and South India Bank were barred from issuing new credit cards after the Reserve Bank of India tightened customer data sharing norms between co-branded partners as some players were found in violation.

“We’re used to investing in developing markets, and the process of regulatory bodies looking to encourage a level-playing field from time to time is not at all unusual. Some of them will have short-term perturbation, but it'll have no long-term impact on any note. Also, given the companies that we invest in, with