Fino Payments Bank targets young millennials as Bharat plugs into digital economy, The Bank’s CASA expansion plan gets digital push

22/03/2023

Mumbai, mar 21: Fino Payments Bank ("Fino Bank", "The Bank") is actively pursuing to capitalize on the opportunities arising out of increasing digitalization of India's economy. The profitable payments bank and the only listed entity in its space, is focusing on digital-led growth as part of its Fino2.0 journey.
For Fino Bank fully digital means engaging with a new set of digitally savvy and aspirational customers, the young millennials. Towards this objective, the Bank strengthened its direct-to-customer (D2C) channel, mobile banking app "FinoPay", with improved user interface and new service offerings. The most significant initiative being the digital savings account service launched in December 2022, which is getting encouraging response. Terming creation of a digital ecosystem as critical for the bank's growth Tejas Maniar, Chief Digital Officer, Fino Payments Bank said, "Our D2C strategy aims to acquire tech-savvy young customers, provide personalized services and cross sell to make Fino Bank a part of their everyday banking. Having a digital savings account is the first step in this journey and we have already opened over 30,000 accounts through FinoPay since launch of the service. To scale up and reach out to a larger customer base, we will continuously strengthen our own digital as well as fintech partner offerings that enhance experience, generate revenue and create value." Fino Bank's digital savings account customers are in the age group of 20 to 30 years from across geographies. It is an indication that customers are willing to adopt digital system as long as it is simple and useful.
In addition to the digital savings account, the new improved FinoPay app offers over 60 features including money transfer, bill payments, partner offerings such as insurance, digital gold, loans and sweep account facility. New age economy is making inroads in Bharat, thanks to digitalization of economy and improved connectivity in terms of highways, internet and smartphone usage.
The over 600 million and growing smartphone user base along with the infra-led connected economy opens new avenues of growth and profitability for Fino Bank.
Having said that, digital has already started making an impact on Fino Bank's predominantly rural focused business. As of end December 2022 (Q3FY23), the Bank's CASA base stood at over 67 lakhs with 36 per cent of the customers' active on digital payments. In 9M FY23, digital transactions contributed 18 per cent to the overall throughput of over Rs 1.87 lakh crore, up from 10 per cent in FY22. Digital foray is expected to improve this contribution further.

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