Fino Payments Bank is one of the newer payment banks created after the Indian regulator granted RBI payment banking licenses to increase bank penetration in India. The bank was founded on April 4, 2017 and went into operation on the day it was founded with 410 branches and more than 25,000 bank points. The bank is part of parent company Fino Paytech Limited, a technology solutions provider for institutions such as banks, governments and insurance companies.
The bank’s partner for the project is LatLong (Onze Technology), a SaaS platform for location information, with which customers can use the possibilities of geospatial data. LatLong was founded in 2007 by former Infosys employees. Since then, the company has leveraged its GIS and data analytics expertise to create a platform for multiple clients in South Asia and the Middle East to receive business intelligence.
Project idea:
The project idea arose when an NGO turned to the bank to provide banking services such as the ability to send money home, recharge talk times, take out family insurance, etc. for 100 workers on a construction site on the outskirts of Mumbai. To create some context, it did so in early May 2020 when India was under a lockdown driven by Covid 19.
This simple need led the bank to create a solution where anyone, anywhere, could easily share their location and a Fino banking services partner would be able to reach out to them. The solution, called Bank at the Doorstep, used Lat Long (a location data service) to match the consumer who needs support for their banking business to the relevant and closest Fino Bank service provider. The solution implemented in the retail area of the bank took advantage of the precise mapping of each Fino Merchant Point and adapted it to the location of a consumer who needed assistance. The solution was put into operation in May 2020 in close cooperation with the bank’s departments such as Marketing, Analytics, Retail Banking and the partner solution provider.
Solution:
The solution relied on the simplicity of the concept and its scalability. The solution essentially adapted the bank service provider closest to the customer. The solution used the proliferation of smartphones and the distribution of Fino with over 280,000 dealer points across the country to provide the customer with a simple URL (fino.latlong.in) with which they can be assigned to a dealer point. All the consumer had to do was click a link and go to a dealer point equipped to help. The differentiator was the ease of use for the customer compared to other banks that had relied on their apps for the customers, which posed a challenge for the sub-banks.
Development of the solution:
The solution evolved when sharing the URL quickly created many use cases. For example, Fino works with several lenders whose consumers go into Fino Merchant Points and deposit their installment money. These lenders have started sharing a modified URL with their customers to motivate them to pay their installments. Interestingly, not only do the loan customers come in and make their repayments, but they also used the banking operations to transfer money, open bank accounts, and buy insurance. This gave tremendous benefits to customers during the difficult time of lockdown when collection agencies were unable to travel and meet customers.
The bank is also running a marketing campaign to promote the use of our ATMs under a similar URL. Since a consumer can see the entire local distribution (within 3-4 km) on his mobile screen, there is the possibility of offering the full range of banking products. The focus was under the bank, which could then serve the local Fino Merchant Point almost on their doorstep.
Implementation:
The solution went live within 48 hours of the idea, and marketing campaigns were launched soon after. This meant that the solution of getting banking services on the consumer’s doorstep was available to our customers in a very short time. Most importantly, consumers of any bank can use Fino’s banking system to withdraw money, pay bills, etc., creating a one-size-fits-all solution. The importance of swift implementation was to allow the under-banks across the country to enjoy and benefit from benefits, especially since the government began depositing welfare funds into their accounts.
Effects on the project:
Within the first week, over 7000 consumers reached over 3000 dealers. This meant that consumers in their area could transact, access funds, etc. In the city of Mumbai, which was well served by bank branches but blocked, residential complexes reached the bank via the URL. Several camps were held in such residential complexes, resulting in 100 Cr INR (~ 140.00,000 USD) cash being withdrawn within days.
The bank also ran this program for customers of a lender and helped the lender raise INR 50L (~ USD 1,00,000) within 3 weeks and helped 6,000 of those customers transfer money.
IBSI view:
This project was a classic case in which a market need resulting from an unprecedented situation of the pandemic could be addressed quickly and efficiently. The simplicity of the concept, coupled with its scalability and quick release, not only helped the bank support its under-bank customers during tough times, but also created a solution that can be used in multiple use cases as the situation improves.
Key factors:
Bank: Fino Payment Bank
Headquarters: India
Solution Provider: LatLong (Onze Technologies)
Time frame: 2 days
