You are here: Home » Finance » News » Others

Fino Paytech eyes payment bank launch by Q4 of FY17

Payment bank licensee is awaiting RBI approval of its tie-up with Bharat Petroleum Corp, which has 21% stake in Fino Paytech

As the first player to have launched the beta version and after having conducted successful field tests, is bullish about starting its payment banking operations by the fourth quarter of the current financial year 2016-17.

The licensee is awaiting approval of its tie-up with state-run Corporation Limited (BPCL) which has acquired 21 per cent stake in Fino Paytech, Rishi Gupta, MD and CEO of the company told Business Standard.

"We have already launched beta version and are now conducting field testing which is 95 per cent ready. In terms of funding, we have applied to for approval after our tie-up with who has acquired 21 per cent stake in Fino Paytech. By the fourth quarter, we should be able to launch the payments bank. We are already the first payments bank to launch beta version and most of our infrastructure is ready," Gupta said.

Annually, has a gross transactions value worth Rs 12,000 crore which generates a revenue of Rs 300 crore, a business it expects to see migrate to its payment banks business.

The company is awaiting the approval for the stake sale through it intends to raise funds for capital. As against the requirement of Rs 100 crore paid-up equity capital, is raising around Rs 400 crore. "We are raising Rs 400 crore and the funding is already tied up for the same, subject to approvals. We will have physical and digital presence, wherein we will have 400 physical branches all over the country," Gupta added.

Currently, operates through two lines of business including corporate and retail wherein the latter has a lending portfolio of Rs 600 crore.

"Under our business correspondents segment, we used to disburse Rs 150 crore per month which we are now doing at around Rs 500 crore per month. Our lending business will grow 2.5 times this year from Rs 325 crore to Rs 850 crore and our remittances is growing by 7-10 per cent per month. Right now we handle Rs 400 crore worth throughput per month through million transactions," Gupta further commented.

With the payment banking license allowing it to foray into liabilities by offering deposit facilities, the company is looking to tap its existing network as well as acquire new customers post launch. Moreover, as part of offering deposits, the company is also looking at issuing debit cards.

"We are still working on tying up for payment gateways. There are around 8-10 major gateways such as PayU, and CCAvenue, among others. We have a tie-up with and may look for more tie-ups later. We already have 5-6 million customers on our platform for remittances which we should be able to convert into deposits and in near future," said Gupta.

Commenting on the payment banking operations, Gupta said, "Our objective is to bring in convenience and simplicity, to bridge the services gap and build on it for our customers to avail the services and for our employees to provide the same. Our target customer group will be people deprived of good banking services. There is a better requirement among lower income and middle income groups. On our part, we have not only tied up for core banking services but also building our own in-house app for payment banking services. Going forward, technology will be the driver for any bank."

Currently, has around 20,000 BC points in rural areas and 10,000 in urban areas, which it intends to take up to 100,000 in next five years.

image
Business Standard
177 22
Business Standard

Fino Paytech eyes payment bank launch by Q4 of FY17

Payment bank licensee is awaiting RBI approval of its tie-up with Bharat Petroleum Corp, which has 21% stake in Fino Paytech

Vinay Umarji & Vimukt Dave  |  Ahmedabad 

Source: www.finopaytech.com
Source: www.finopaytech.com

As the first player to have launched the beta version and after having conducted successful field tests, is bullish about starting its payment banking operations by the fourth quarter of the current financial year 2016-17.

The licensee is awaiting approval of its tie-up with state-run Corporation Limited (BPCL) which has acquired 21 per cent stake in Fino Paytech, Rishi Gupta, MD and CEO of the company told Business Standard.

"We have already launched beta version and are now conducting field testing which is 95 per cent ready. In terms of funding, we have applied to for approval after our tie-up with who has acquired 21 per cent stake in Fino Paytech. By the fourth quarter, we should be able to launch the payments bank. We are already the first payments bank to launch beta version and most of our infrastructure is ready," Gupta said.

Annually, has a gross transactions value worth Rs 12,000 crore which generates a revenue of Rs 300 crore, a business it expects to see migrate to its payment banks business.

The company is awaiting the approval for the stake sale through it intends to raise funds for capital. As against the requirement of Rs 100 crore paid-up equity capital, is raising around Rs 400 crore. "We are raising Rs 400 crore and the funding is already tied up for the same, subject to approvals. We will have physical and digital presence, wherein we will have 400 physical branches all over the country," Gupta added.

Currently, operates through two lines of business including corporate and retail wherein the latter has a lending portfolio of Rs 600 crore.

"Under our business correspondents segment, we used to disburse Rs 150 crore per month which we are now doing at around Rs 500 crore per month. Our lending business will grow 2.5 times this year from Rs 325 crore to Rs 850 crore and our remittances is growing by 7-10 per cent per month. Right now we handle Rs 400 crore worth throughput per month through million transactions," Gupta further commented.

With the payment banking license allowing it to foray into liabilities by offering deposit facilities, the company is looking to tap its existing network as well as acquire new customers post launch. Moreover, as part of offering deposits, the company is also looking at issuing debit cards.

"We are still working on tying up for payment gateways. There are around 8-10 major gateways such as PayU, and CCAvenue, among others. We have a tie-up with and may look for more tie-ups later. We already have 5-6 million customers on our platform for remittances which we should be able to convert into deposits and in near future," said Gupta.

Commenting on the payment banking operations, Gupta said, "Our objective is to bring in convenience and simplicity, to bridge the services gap and build on it for our customers to avail the services and for our employees to provide the same. Our target customer group will be people deprived of good banking services. There is a better requirement among lower income and middle income groups. On our part, we have not only tied up for core banking services but also building our own in-house app for payment banking services. Going forward, technology will be the driver for any bank."

Currently, has around 20,000 BC points in rural areas and 10,000 in urban areas, which it intends to take up to 100,000 in next five years.

RECOMMENDED FOR YOU

Fino Paytech eyes payment bank launch by Q4 of FY17

Payment bank licensee is awaiting RBI approval of its tie-up with Bharat Petroleum Corp, which has 21% stake in Fino Paytech

Payment bank licensee is awaiting RBI approval of its tie-up with Bharat Petroleum Corp, which has 21% stake in Fino Paytech As the first player to have launched the beta version and after having conducted successful field tests, is bullish about starting its payment banking operations by the fourth quarter of the current financial year 2016-17.

The licensee is awaiting approval of its tie-up with state-run Corporation Limited (BPCL) which has acquired 21 per cent stake in Fino Paytech, Rishi Gupta, MD and CEO of the company told Business Standard.

"We have already launched beta version and are now conducting field testing which is 95 per cent ready. In terms of funding, we have applied to for approval after our tie-up with who has acquired 21 per cent stake in Fino Paytech. By the fourth quarter, we should be able to launch the payments bank. We are already the first payments bank to launch beta version and most of our infrastructure is ready," Gupta said.

Annually, has a gross transactions value worth Rs 12,000 crore which generates a revenue of Rs 300 crore, a business it expects to see migrate to its payment banks business.

The company is awaiting the approval for the stake sale through it intends to raise funds for capital. As against the requirement of Rs 100 crore paid-up equity capital, is raising around Rs 400 crore. "We are raising Rs 400 crore and the funding is already tied up for the same, subject to approvals. We will have physical and digital presence, wherein we will have 400 physical branches all over the country," Gupta added.

Currently, operates through two lines of business including corporate and retail wherein the latter has a lending portfolio of Rs 600 crore.

"Under our business correspondents segment, we used to disburse Rs 150 crore per month which we are now doing at around Rs 500 crore per month. Our lending business will grow 2.5 times this year from Rs 325 crore to Rs 850 crore and our remittances is growing by 7-10 per cent per month. Right now we handle Rs 400 crore worth throughput per month through million transactions," Gupta further commented.

With the payment banking license allowing it to foray into liabilities by offering deposit facilities, the company is looking to tap its existing network as well as acquire new customers post launch. Moreover, as part of offering deposits, the company is also looking at issuing debit cards.

"We are still working on tying up for payment gateways. There are around 8-10 major gateways such as PayU, and CCAvenue, among others. We have a tie-up with and may look for more tie-ups later. We already have 5-6 million customers on our platform for remittances which we should be able to convert into deposits and in near future," said Gupta.

Commenting on the payment banking operations, Gupta said, "Our objective is to bring in convenience and simplicity, to bridge the services gap and build on it for our customers to avail the services and for our employees to provide the same. Our target customer group will be people deprived of good banking services. There is a better requirement among lower income and middle income groups. On our part, we have not only tied up for core banking services but also building our own in-house app for payment banking services. Going forward, technology will be the driver for any bank."

Currently, has around 20,000 BC points in rural areas and 10,000 in urban areas, which it intends to take up to 100,000 in next five years.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard