SBM Bank Ties With 30 Fintech To Grow Deposit
- ByAyushi Ray | July 19, 2021
A subsidiary of State BAnk of Mauritius, SBM ties with 30 fintech companies to acquire customers based on the ‘banking as a service’ model. With this model, fintechs companies will provide an interface for their customers, and the bank would help in providing a network that would connect customers not only with banking facilities but also utilizing other facilities of fintech companies. SBM, when earlier operated in India, did not have any online banking facilities. In end-2018, the bank got a full-fledged bank licence. “This enabled us to leapfrog in terms of IT and provide a new technology stack to the customer,” said MD & CEO Sidharth Rath. According to him, the bank wanted to build a liability franchise first. “Building a branch network is expensive and it costs as much as Rs 1-1.5 crore to set up a branch. For us, the lockdown was a blessing as it hastened the move to digital,” he added.
One of the fintechs the bank has partnered up with in Paisa Bazaar, through which it can produce new items such as security credit cards. Young adults who are generally not eligible for getting a credit card, can get one through this facility, by opening a fixed deposit account online. Once they get in the habit of clearing their dues timely, they can get an original credit card. Similarly, through a partnership with PayNearby, the bank can get small recurring deposits through the ‘Bachat Khata’ offered by fintech, which also offers business correspondent service through digital platforms. Partnering with Nium, customers can transfer money across borders. Other partners include big names such as : RedCarpet, EnKash, Karbon, Finin, Open and Kodo.
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