Bank Bazaar Eyes Big Boost from UPI

Co is hop­ing to be­come prof­itable by the end of the next fi­nan­cial year

The Economic Times - - Companies - Pratik.Bhakta@ times­

Mum­bai: At a time when on­line mar­ket­place firms are still look­ing for ways to con­sol­i­date their busi­ness, fi­nan­cial list­ing por­tal Bank Bazaar is hop­ing to be­come prof­itable by the end of the next fi­nan­cial year with their busi­ness get­ting a big boost from uni­fied pay­ments in­ter­face (UPI) and com­pletely pa­per­less ap­pli­ca­tions. “My tar­get is to make profit by FY18 which I have also told my in­vestors which is Ama­zon, Fidelity and Se­quoia and this will be achieved by go­ing pa­per­less, gen­er­at­ing scale and de­liv­er­ing all fi­nan­cial prod­ucts,” said Ad­hil Shetty, CEO, Bank Bazaar. Other than bank­ing prod­ucts, Bank Bazaar is in the process of launch­ing mu­tual funds listings on its web­site. It also plans to of­fer two-wheeler in­surance prod­ucts by the next quar­ter. How­ever, it is hop­ing that the cen­tral bank would come out with a state­ment on dig­i­tal sig­na­tures within the next 6 months which would al­low peo­ple to buy fi­nan­cial prod­ucts com­pletely on­line, thereby giv­ing a big boost to the busi­ness. “Dig­i­tal sig­na­tures are ac­cepted as per the In­dian IT Act and the Ev­i­dence Act, even Sebi al­lows mu­tual fund pay­ments up to .₹ 50,000 to be com­pletely pa­per­less once banks start ac­cept­ing it for pro­cess­ing of fi­nan­cial prod­ucts. I will al­low my cus­tomers to get their loan not only ap­proved but also pro­cessed within 30 min­utes,” said Shetty.

As of now, Bank Bazaar cus­tomers get an ap­proval slip from the fi­nan­cial in­sti­tu­tion and its rep­re­sen­ta­tives visit him for fi­nal doc­u­men­ta­tion and dis­bur­sal. Shetty feels that fol­low­ing e-KYC, once eSig­na­tures also start get­ting ac­cepted, the last-mile of phys­i­cal ver­i­fi­ca­tion would not be re­quired.

While on­line ver­i­fi­ca­tion would be pos­si­ble through Aad­haar in­te­gra­tion, UPI would al­low easy trans­fer of funds. “Once UPI comes into com­mon use, the is­sue around mov­ing money would also be solved. Bank Bazaar would al­low cus­tomers to make pay­ments through the app it­self com­pletely seam­lessly and even trans­fer credit amounts di­rectly to the user’s bank ac­count. Now, there are op­tions for pay­ments via cards, net bank­ing and the third op­tion would be­come UPI,” he said.

Bank Bazaar with a foot­fall of around 9 mil­lion per month gen­er­ates rev­enue not only from the com­mis­sion from banks for a suc­cess­ful cus­tomer ac­qui­si­tion; it also charges banks for list­ing and pro­mo­tion on its plat­form, es­pe­cially to a tar­geted au­di­ence. “Banks are more than happy to pay me be­cause we can ac­quire cus­tomers for them at a far cheaper rate than agents and also the cost of set­ting up phys­i­cal branches,” he said.

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