Growth of India’s FinTech Industry: Interview with Jitendra Dhaka, Founder, BankSathi
By Leandra Monteiro
BankSathi is a technology platform that enables financial advisers to develop their digital presence and begin selling financial goods online. It does this by constructing a LIC layer that sits over each and every financial institution. Offers a selection of financial products and services, as well as information and digital processes, customer lead management, and complete insight into status.
In conversation with IBS Intelligence, Jitendra Dhaka, Founder, BankSathi discusses the fragmented financial industry in India and the immense potential for FinTechs to grow and expand across the country.
The idea behind launching BankSathi
The Indian FinTech industry has experienced tremendous expansion as a result of an increase in the number of people seeking investment opportunities and a rising enthusiasm and awareness among consumers to make use of FinTech products.
However, just 10% of the population in India is currently familiar with the services offered by FinTech companies. The traditional model of FinTech that is followed by businesses in India places a heavy emphasis on the use of family or references as customers. Through the distribution of FinTech services and the generation of sales through financial advisers, BankSathi is attempting to change the business paradigm for the Indian FinTech industry.
What sort of issue-solving does BankSathi engage in?
Through the use of the distribution channel, BankSathi is working to expand the amount of financial products that are brought into the market. According to the data provided by the bureau, more than 77% of financial goods are offered either through family relatives or through reference models. However, these individuals do not receive the appropriate education to carry out this function. In this context, the role that Banksathi advisors play in the marketing and distribution of various financial products is critical. Our advisers receive specialised training in order for them to successfully pitch to our consumers and present them with accurate information.
At the moment, more than 80% of our customer base, which is comprised of banks and other financial institutions, is attempting to distribute its goods through our financial advisers.
What are the problems you have observed and the solutions you are working on, given that you are present throughout the majority of India?
The Problem –
- India has nearly 190M unbanked people, only 3% of Indians own credit cards, whereas, Americans have 300 credit cards in 100 people. India has 1% penetration for non-life insurance whereas the USA has 8.7% penetration. This picture is the same for other financial products too.
- Customers are sceptical about banks & financial institutes’ motivations and incentives. People are not clear about which financial products they need to buy. People are not confident because they don’t have access to knowledge about financial products. Customers are looking for trust & assistance.
- Financial Institutes have very less geographical coverage due to high infrastructure and manpower costs. Customers are less tech-savvy, so they require a personal touch to buy financial products.
The Solution –
BankSathi is a technology platform that enables financial advisers to develop their digital presence and begin selling financial goods online. It does this by constructing a LIC layer that sits over each and every financial institution. Offers a selection of financial products and services, as well as information and digital processes, customer lead management, and complete insight into status. By capitalising on their already established clientele and utilising social media, advisors can generate significant income. Banksathi is providing its advisers with possibilities to earn consistent streams of revenue.
Recently you have received IRDAI Insurance License, do you have any plans to accelerate growth and expansion?
In the following days, we are planning to establish partnerships with insurance firms ranging from the smallest to the largest level. We have already begun the process, and the Insurance category will be available on the BankSathi app in a very short amount of time.
We are modernising our IT infrastructure and adding more new features in order to fulfill the requirements of our users. On the application platform itself, Advisors will have the ability to qualify for POSP and obtain the licence. The advisors will receive training from the professionals. Concerning the test, we are going to give it to them so that they may expand their knowledge and so that we can ensure that they will supply accurate information to their consumers.
Who can typically become financial advisors on your platform?
If one possesses the willpower, determination, and interest necessary, one can become financial advisor. These kinds of individuals receive the appropriate training from BankSathi. Every day, we provide webinars in which our specialists from the Learning and Development department go live with advisers and provide in-depth product instruction. Not only do these experts provide product training, but they also teach how to pitch to their customers and how to increase their sales. This training covers product fundamentals such as features, terms and conditions, the application process, frequently asked questions (FAQs), and user journey videos. Interestingly a lot of homemakers have become our BankSathi.
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