Fintech, as we all know, is nothing but financial technology and these fintech startups are working towards making banking hassle-free and cost-effective for the common people. Banks have even realised that fighting these fintech startups will only cause more harm to their business than profiting. Fintech companies are now joining hands with banks to make banking more cost efficient for the customers.
With fintechs being a part of the banking system now, banks are slowly inching towards acquiring more customers, and with the help of technology operational costs are even less, but there’s definitely a flurry of partnerships.
Also, fintech companies hire some of the best minds, people with a degree in fintech courses thus common people have a better customer service experience. Since banks are being able to provide the service that their clients’ desire acquisition of customers have grown by leaps and bounds. For example, RBL bank has a partnership with over 90 startups and has been able to acquire around 30% of its total 2.8 million customers. And, all this has been possible after their tie-up with the fintech startups. They have even tied up with MSwipe and Ezetap which are merchant acquirers and have thus easily become bankers for their merchants. So, RBL has been able to get a huge clientele, and the process was entirely cost effective.
MoneyTap is another startup which has tied up with RBL as well, and they provide RBL’s customer baselines of credit in a simple hassle-free online method. RBL has since acquired 2, 00,000 user through the MoneyTap’s app download! MoneyTap basically targets the lower-middle income group of people for whom getting a loan through the traditional banking method is simply impossible. But MoneyTap offers chatbot tech which acts as the front end of the bank and with some minimal KYC process this strata of customers are provided with a credit line.
Yes, Bank is another bank which has turned to fintech startups like PaisaBazaar and Niyo to make banking cost effective. With the help of the digital channels that these Fintech startups are made of, Yes Bank has basically been able to acquire 20% of its customer base. Their partnership with Niyo, which helps in managing employee salary and expense management has allowed them to issue 35000 reimbursement cards and wallets, which in turn generate 67000 transactions monthly!
Basically, the teams which are a part of the fintech landscape have understood the market trends properly, and they have done some of the best fintech online courses or have been to some of the best fintech schools. These allow them to quickly size up the market need and provide customers with their banking needs in the most cost-effective way possible. In fact, Yes Bank has recently launched, and accelerator programme for the fintech startups and have thus been able to reach a good number of first-time borrowers. This group of people need loans for a short duration, and the fintech landscape offers them just that.
They have been able to reduce labour costs by employing Rupeeseed's chatbot tech in the brokerage and securities business and have since mitigated the need of relationship managers.