Fintechs go retro: Companies bet on fixed deposits to boost topline

Companies offer up to 9.5% interest rate per annum on fixed deposits

Fintech companies are tapping into traditional forms of banking products such as fixed deposits (FDs) as they expand their financial services bouquet.

 

New age companies such as Stable Money, Flipkart-backed super.money, and MobiKwik have rolled out such services offering interest rates up to 9.5 per cent per annum across different tenures.

 

This is the first time that fintechs have evinced interest in FDs.

 

The offering is extended in partnership with small finance banks, deposit-taking non-banking financial companies (NBFCs), and commercial banks.  

 

These are private partnerships with no separate licensing required from the regulator. However, as the norm goes, FDs are