Bank Bazaar Eyes Big Boost from UPI
Co is hoping to become profitable by the end of the next financial year
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.