Fino Payments Bank (Fino) is planning to ramp up its distribution points and double the wallet share of active customers over the next four years, encouraged by the growth in key segments such as current & savings accounts (CASA) and cash management services (CMS).
The target is to have 20 lakh distribution points and two crore CASA customers and increase the wallet share of active customers to Rs 1,000 from Rs 500.
Currently, Fino has more than 12 lakh distribution points in the country and 60 lakh CASA accounts.
Fino is a subsidiary of Fino Paytech Ltd, backed by investors such as BPCL, ICICI group, Blackstone, IFC, Intel and Life Insurance Corporation (LIC).
It had commenced operations as a payments bank with effect from June 30, 2017. It turned profitable in the fourth quarter of 2019-20 and has been profitable since then.
Speaking to analysts at a concall recently, the top management of the niche lender said that during the second quarter ended September 30, 2022, CASA accounts opened grew 54 per cent over the same period in the previous year at 7.6 lakh which was the highest in its history, thereby giving the bank a strong base for cross-selling opportunities.
Moreover, CASA renewal income grew 153 per cent during the period leading to a robust growth in its “annuity” business. While the new CASA subscription income rose 51 per cent over the previous year period, the banks’ total account base as on September 30 was at 59.5 lakhs of which 34 per cent accounts were active on digital payments.
While there have been speculations on whether Fino will convert into a small finance bank, CEO Rishi Gupta told the analysts that Fino is transaction-focused bank and it will largely retain this character. “So even if we convert or transition into an SFB over the next two, three years, it’s going to be largely a transaction-focused bank, where data monetisation will play a big role. And it will not be an asset-driven bank to a large extent.
He hastened to add that SFB will be up around 18-30 months process, without disclosing on whether it intends to approach the RBI in this regard.
