Fino Bank expects to touch 2 million customer base by end of Q1 FY21

By Priyanka Pani

India’s leading payments bank Fino Payments Bank Limited (FPB) said that it has opened over 200,000 full KYC CASA (current accounts and savings accounts) from April to mid-June amidst the pandemic. The bank expects to end Q1 FY21 with 240,000 new accounts and an overall customer base of around 2 million.

In addition to Fino’s own customer base, the bank’s network of over 400,000 points provides services to over 20 million banking customers every month. The bank’s network, 80% of which is in rural areas, facilitates more than 35 million transactions valued at over USD 1 billion per month, it said in a release.

The newly opened accounts will further help increase transactions and improve footfalls at Fino points. Around 80% of the new accounts are savings while 20% are current accounts. More than 90% of the accounts are from rural India driven largely by the over 2.5 crore people who banked at Fino points during this period.

Terming the new accounts as a reflection of customer preference and choice, Shailesh Pandey, Chief Sales Officer, Fino Payments Bank said, “A significant number of people who opened accounts have experienced digital banking and availability of cash at our points. Also, outreach through digital and social media channels helped connect with millennials who form more than 50% of our new customers. We are grateful to our customers for giving us an opportunity to service them. In line with our COVID (creating opportunities in virus-infected days)strategy, we will continue to explore ways to improve banking access, build partnerships, increase transactions, and enhance the customer experience.”

Direct benefit transfer (DBT) beneficiaries formed the bulk of rural customers who experienced the convenience of micro ATM and AePS based banking at Fino points. Those who opened found linking the Fino account easier to get government benefits compared to their existing accounts. This is an endorsement of Fino’s simple account opening process where customers are banking ready.

At Fino banking points such as Kirana stores, medical shops, and BPCL outlets, customers can avail of services such as cash deposit, withdrawal, money transfer, bill payments, life, health and vehicle insurance.

Recently, Fino Payments Bank announced turning profitable at the operating level for FY19-20. It is the only standalone profitable payments bank that works solely on RBI’s financial inclusion objective by improving banking access predominantly in rural India.

Transactions have been the driving force behind Fino Payments Bank’s operating profit journey. In FY 19-20, FPB facilitated over INR 1000 billion worth of transactions, doubling on the previous fiscal’s throughput. In terms of volume, transactions have almost doubled from 195 million in FY 18-19 to over 380 million in FY19-20.

The bank continues its growth momentum in FY 20-21 amidst the COVID challenges by facilitating digital transactions and forging partnerships in its quest to bring banking closer to the masses.