February 9, 2017
The traditional financial service industry is in the midst of a digital transformation that is changing the façade of a century-old industry. New-age enterprises called FinTech startups are presenting a credible threat to incumbent banks who have taken cognizance of this new development. Banks are now opening up their operations to collaborate with FinTech startups to reach a far greater network with much more efficiency. India is at the cusp of this new development with a population of about 1.3 billion and an unbanked population of 233 million. This gives an immense fillip to bank-FinTech collaboration in India. We have covered some of the exciting bank-FinTech startup deals below:
IDFC Bank has partnered with IndiaLends to enable first-time borrowers who do not have a credit history to take loans. Through this process, IDFC is looking to tap unbanked market share and grow its lending portfolio. (February 2017)
Money lending app MoneyTap has launched an app-based credit line as a facility for consumers to borrow money at low interest rates for a flexible tenure, with deep integration with RBL bank.(September 2016)
Mobile payments startup PhonePe, in partnership with private lender YES BANK has launched unified payments interface-based payments app allowing users to link their bank accounts securely to their smartphone using National Payments Corporation of India’s encrypted libraries. (August 2016)
FreeCharge has launched virtual prepaid cards called "FreeCharge Go" in partnership with Yes Bank Ltd. The Virtual Prepaid Card on the Mastercard platform – which is in partnership with FreeCharge – allows customers who do not own credit cards or even online banking facilities to immediately start making purchases online or in-app by linking to a prepaid wallet. (May 2016)
HDFC Bank has launched Chillr, a mobile app which allows users to instantly transfer money to any contact in their phonebook. Chillr is an application that is linked directly to the customer's bank account and it can be accessed only with M-PIN known to the customer alone. (March 2015)
CRMNEXT is a digital CRM software product. The firm provides a customer relationship management platform on both public and private clouds. Its banking clientele includes HDFC Bank, ICICI Bank and Axis Bank.
IDFC Bank has partnered with digital lending platform Capital Float to offer credit to small businesses. As a partner, Capital Float will provide IDFC Bank access to its digital network of borrowers for small-ticket loans while the bank will provide its product portfolio to Capital Float. (December 2016)
NFC mobile payments startup ToneTag partnered with YES BANK (October 2016) and HDFC Bank (February 2016) to integrate and deploy sound based contactless payments. ToneTag will allow YES Pay wallet users to make 'cardless' and offline payments at merchant outlets through their mobile phone.
Kotak Mahindra Bank has launched an end-to-end digital process for account opening with the help of Germany's WebID Solutions — a global pioneer in online identification. The account opening process is integrated with the Kotak Now app. (September 2016)
In December 2016, CreditVidya announced their partnership with Fullerton India to offer alternative data-based authentication and verification services, which significantly improves the efficiency of loan processing for Fullerton.
Yes Bank has recently selected eight startups that will be part of their autumn cohort and will be working across different verticals like payments, digital banking, analytics, WealthTech, expense management, and lending. (January 2018)
Trupay offers UPI payment solutions. State Bank of India (SBI) and HDFC Bank have tied up with the company’s united payment interface (UPI) to help more people go cashless with transactions. (November 2016)
Oxigen has launched Virtual Visa Card in association with RBL Bank that will convert the wallet into a visa card. The virtual visa card will work as real visa credit card where users will have to create a one-time, 16-digit card number before making transactions. (January 2016)
Eko has partnered with RBL Bank and NPCI in December 2015 to launch a semi-closed prepaid wallet. The product, called Eko Wallet, will offer utility bill payments, retail merchant payments and one-click payments via its apps and point-of-sale presence. Eko has also paired up with State Bank of India and ICICI Bank.
Novopay is a Bengaluru-based, startup that provides banking to the unbanked regions by helping people set up their own bank account and manage their finances. It has partnered with RBL bank, Axis bank, Bank of India and IDFC bank. (September 2015)
Vaya has partnered with YES bank and The Ratnakar Bank to provide financial facilities in under-banked districts of Maharashtra, Karnataka, Odisha, Bihar and Jharkhand. Vaya is a business correspondent firm using tablet banking to provide seamless core banking systems in rural areas and loans for women’s self-help groups. (March 2015)
Vortex Engineering helps banks roll out end-to-end ATM services in the rural areas through its solar-powered ATMs. Vortex has set up 545 ATMs including 300 solar-powered ATMs for the State Bank of India. (March 2010)
In July 2016, Bank of Baroda had appointed Fisdom as its wealth management partners for their entire retail customer base. Fisdom helps people manage their money with the help of a robo-advisor. (August 2016)
Axis Bank has tied up with FinTech firm Ripple for usage of block chain solutions for cross-border remittances. (January 2017)
India Transact Services Limited’s Ongo wallet enables cashless transactions across auto rickshaws. In 2016, Mastercard launched Masterpass’ QR Code solution on the Ongo mobile wallet through Ratnakar Bank Limited (RBL) and mVisa empowered over 1000 Ongo-enabled TABcab taxis in Mumbai. (November 2016)
Happay has exclusively tied up with Ratnakar Bank for the co-branded Happay Business Expense VISA Card. It is a one-of-a-kind business expense management solution that streamlines an organization’s expense workflow from end-to-end and gives real-time visibility and control over business spending. (February 2015)
YES BANK has also collaborated with Zaggle for the issuance of its prepaid instrument on the Mastercard platform for corporate consumers across India. (January 2016)
YES BANK in partnership with FinTech startup NiYO has also launched Yes Bank NiYO Benefits Card which will help organizations in handling employee benefits and enable employees to claim their benefits easily. (September 2016)
Axis Bank has partnered with Vayana Network in March 2015 to launch Invoice to Payment, an end-to-end digital invoicing and payment solution. The solution aims to simplify B2B payments in India which is estimated at over $95 billion annually. Axis Bank has also launched Ping Pay service, a unique multi-social payment app in partnership with Fastacash, that enables value transfers like money, airtime, coupons, etc. Ping Pay is bank-agnostic. (May 2015)
Note: This list is not exhaustive. The article aims to talk about the trend with some examples. If you are a startup or a bank and want to get your case study included please do write to us and we will be happy to list it after fact check.