Chinese tech company Xiaomi is reportedly looking to launch a consumer lending business in India. And the mobile phone vendor might have a not so secret weapon to succeed.
According to a report by Reuters, Xiaomi is banking on leveraging its position as the leading smartphone provider in India to get a bigger slice of the country’s financial services sector. The same report stated that the Xiaomi is poised to launch a consumer lending business.
However, Reuters also noted that things might not be that easy for the Chinese company that reported some disappointing second quarter earnings in August.
Firstly, privacy is becoming a huge concern in the region, which has forced businesses like Google and Facebook to change how they conduct themselves.
Secondly, Xiaomi is hardly alone in trying to get into the Indian market. Not only are FinTech startup trying to claim a seat for themselves at the table, but tech titans like Apple and Google are also making moves into the market.
Indeed, FinTech Global recently reported that Indian regulators are currently reviewing WhatsApp to see if it is compliant with the nation’s rules before it can open its payment service in the country.
In related news, an Amazon executive has encouraged Indian regulators to ease up their e-commerce laws, saying it would help the country’s economy. However, the Government has made the case it is protecting both small business owners and people’s privacy by changing the rules.
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