Unity SFB plans to tap 100 million Payback users

Unity Small Finance Bank (SFB), promoted by the Centrum-bharatpe combine, is looking to target over 100 million members of Payback — a loyalty programme company Bharatpe acquired in June — to become a digital bank.

Jaspal Bindra, chairman of Centrum Capital, had said that the proposed business model is one of collaboration and open architecture, to deliver a seamless digital experience, and aspire to be India’s first digital bank.

Elaborating on the bank’s approach on a digital platform, Ashneer Grover, co-founder and managing director, Bharatpe, said it would need all possible digital channels, including Payback's 100-million-plus customer base.

“This will be done within what the regulatory framework allows us to do at arm's length. This (Payback) is an independent business,” said Grover.

The Centrum-bharatpe consortium got the SFB licence from the Reserve Bank of India (RBI) on Tuesday. The consortium will take over the assets and liabilities of the beleaguered Punjab and Maharashtra Cooperative (PMC) Bank.

Between Centrum and Bharatpe, a team of 20-25 people worked on the project, making sure the in-principle licence got converted into the final licence. They had to complete formalities like business transfer agreements for Centrum's non-banking financial companies - microfinance and small business finance – to merge. These had to be ratified by the RBI.

Now focus is on Step 2 - the PMC amalgamation scheme, for which will work closely with the RBI. The timing for integrating PMC will depend upon when the RBI and the government release the scheme for amalgamation.

Once the PMC scheme is ratified and the takeover process complete, the stage is set for Step 3. It will involve getting the bank up and running and making sure the accounts are active again, said Grover.

The lender will start operations with a ~1,500-crore loan book.

“This (the bank’s approach on a digital platform) will be done within the regulatory framework,” says Ashneer Grover, co-founder and MD, Bharatpe