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Sunday, April 2, 2017

11 Differentiators which Fino Payments Bank can adopt


          Fino Payments Bank has received the final ok from Reserve Bank of India. In the next couple of years, you will be able to see ‘Fino Payments Bank’, signboard.

          The Fino group has a number of key features which can be deployed to scale up volumes quickly.

These “11 Differentiators” will enable Fino Payments Bank to rise above the crowd.

Differentiator 01: Leverage Fino Bpay to attract customers around BPCL Outlets for digital transactions.  In July 2016, Fino Paytech entered into a strategic partnership with domestic oil major Bharat Petroleum Corporation Limited (BPCL), which acquired a 21% stake in Fino for ₹251 crore.
BPCL has 13,450+ fuel stations spread all over India. BPCL has 4,500+ LPG distributors, with 1500 exclusive rural distributors.
In fact, Fino Payments Bank should set up a separate vertical to digitise all transactions at BPCL outlets. This itself will provide the much needed CASA Balances to earn a decent float income.
The main advantages of BPCL Outlets are:
A)   Uninterrupted power supply
B)    Ease of ensuring uninterrupted network connectivity
C)    A safe atmosphere for customers to carry out banking related transactions
D)   Ease of getting premium space with minimal efforts

Differentiator 02:: Integrate Fino Bpay Wallet into BPCL Smart Drive App. BPCL launched its Smart Drive in 2016 with various features to encourage fuel users to search for a BPCL fuel station only.
         
Differentiator 03::: Quickly sign up merchants in and around BPCL Outlets on Fino Bpay. Open Current Accounts for the merchants and as and when the balances touches INR 1 lacs, initiate an auto transfer to the Merchants main bank account via NEFT/IMPS.
This will significantly reduce the cash usage at such merchants
Quote from Reserve Bank of India’s operating guidelines for Payment Banks
Bank deposits
(i) As provided in the current RBI directions, PBs can accept only savings and current deposits. The aggregate limit per customer shall not exceed INR100,000, as provided in the Licensing Guidelines. However, the RBI will have no objection to the PBs making arrangements with any other scheduled commercial bank / SFB, for amounts in excess of the prescribed limits, to be swept into an account opened for the customer at that bank. This arrangement should be activated with the prior written consent of the customer

Differentiator 04:::: Deploy mobile banking kiosks at local Haats in and around BPCL Rural outlets.

Differentiator 05::::: Tie up with Small Finance Banks for instant overdraft facility to its Fino BPay merchants. The overdraft can commence with a minimal amount and be scaled up based on the merchants cash-flows.

Alternatively, it can offer overdrafts through its  its own RBI registered NBFC-MFI, i.e Intrepid Finance & Leasing Pvt Ltd.

Differentiator 06:::::: Create Wi-Fi Hotspots in all its branches to enable its customers to transact digitally with minimum cost and high safety. Depending on the potential, it can deploy trained staff to assist customers to transact digitally.

In this area, Fino Paytech is already having experience i.e Assisted e-commerce model, an innovation under FINO Money started off with Snapdeal.

Differentiator 07::::::: Focus on national high-remittance corridors to increase the footfalls to its digital platform. Fino Payments Bank has already tied-up with Western Union to tap the lucrative remittance market.

Differentiator 08:::::::: Decide which is better -  High service fees, low volumes or – Low service fees, high volumes

Differentiator 09::::::::: Adopt local Government schools in and around BPCL outlets for Financial inclusion and financial literacy programs. This is a good way to promote brand value.

Differentiator 10:::::::::: Focus on Truck Drivers to attract customers into Fino Payments Bank fold

Differentiator 11::::::::::: Tap its massive 78 million customers for more differentiators

Links:
Link A) Fino Paytech to launch payment bank, targets high domestic remittance areas

Link B) Fino Paytech set to start payments bank ops from April


Link C) Fino BPay

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