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We're bringing financial services closer to rural customers: RBP Finivis CEO

The usage of digital and contactless payments seen surge during the pandemic as people opted for safe ways of financial transaction

Sam Gupta, Director and CEO, RBP Finivis
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Sam Gupta, Director and CEO, RBP Finivis

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Neo banking has significantly become a buzzword lately within the financial and banking services ecosystem. Sam Gupta, Director and CEO, RBP Finivis in an exclusive interview with Bizz Buzz said that the pandemic has considerably accelerated the adoption of digital payments and seen the lending solutions at a breakneck speed, resulting in the mass inclusion of factions of the society that were ill-served by traditional financial methods

Unlike the traditional banking systems, neo banks comprise a completely different and unique business model as they marginally make money between money lending and inflow. Neo banks are highly customer-centric and provide customized services to their customers backed by technology

These new-age banks are globally taking the fintech landscape by storm and the term has gained spotlight on the news and in media. As the financial ecosystem is shifting towards focusing more on customer experience and satisfaction, the neo banks are bridging the gap between expectation of customers and services of conventional banks


Why do you think fintech is crucial for financial inclusion in India?

The implementation of financial inclusion in India started in 1960s keeping an eye on the economic development of the country. With the nationalisation of banks the RBI instructed all the banks to include financial inclusion in their business planning. Its progress and execution have been monitored by RBI through implementation of Financial Inclusion Plans (FIP) on predefined protocols. The fintech plays a key role in financial inclusion by improvising the traditional business model of banks and financial institutions, to deliver financial products and services to the financially excluded population in an efficient manner.

How Covid-19 has impacted the Indian fintech industry?

Pandemic has considerably accelerated the adoption of digital payments and seen the lending solutions at a breakneck speed, resulting in the mass inclusion of factions of the society that were ill-served by traditional financial methods. The usage of digital and contactless payments seen surge during the pandemic as people opted for safe ways of financial transaction.

How do cashless transactions help users for billings, payments, recharge and other aspects?

As part of the 'digital India' campaign, the government aims to create a 'digitally empowered' economy that is 'faceless, paperless, and cashless'. The government is now providing waivers on cashless transactions utilized for service tax payments, purchase of fuel, train tickets, highway toll tickets, and insurance schemes. There are many payment apps and mobile wallets that do not charge any kind of service fee or processing fee for the service provided. The UPI interface is one such example, where services can be utilized by the customer free of cost. There are many rewards and discounts offered to customers using digital payment apps and mobile wallets. There are attractive cash back offers given by many digital payment banks.

All transaction records can be maintained. Customers can track each and every transaction that is made. These records also help them track black money and other illegal transactions. Cashless payments have become one of the greatest means to fight corruption and organized crime in India. With the introduction of cutting-edge technology and constant improvement of existing technologies, we might see faster, more transparent and more secure cashless payments.

Throw some light on Neo Banking in detail?

Neo banking has significantly become a buzzword lately within the financial and banking services ecosystem. These new-age banks are globally taking the fintech landscape by storm and the term has gained spotlight on the news and in media. As the financial ecosystem is shifting towards focusing more on customer experience and satisfaction, the neo banks are bridging the gap between expectation of customers and services of conventional banks.

What is neo bank: A neo bank is basically a digital bank without any physical branches. It is entirely online without being present at any specific location. It covers within its ambit various financial service providers who cater to present day tech-savvy customers. Neo banks can be understood as fintech firms providing digitized and mobile-first financial payment solutions and money transfers, money lending and so on.

Instead of being physically present at a particular location, neo banking is entirely online. It's an umbrella of financial service providers who attract today's tech-savvy customers. Neo banks can be called fintech firms that provide digital and mobile-first financial solutions payments and money transfers, money lending, and more. Neo banks do not have a bank license of their own but rely on bank partners to offer bank licensed services.

Why neo bank: Unlike the traditional banking systems, neo banks comprise a completely different and unique business model as they marginally make money between money lending and inflow.

Neo banks are highly customer-centric and provide customized services to their customers backed by technology. Neo bank entails digital banking services conveniently available at a palm's touch. It is relatively secure as it uses advanced technologies like artificial intelligence (AI), facial identification and biometrics. And all banking services are available in one click as they are linked with one portal.

What things the customers should consider while selecting a neo bank?

Keep in mind the following five points when selecting the right neo bank for yourself:

Do your research: Choosing the right bank is the most important financial decision one will make. Hence, researching online should be the first thing to do. You will easily find expert and customer reviews for neo banks online just like you find restaurant reviews.

Consider the values: When choosing a neo bank, make sure that the money you invest here aligns with your core values. Banks deposit your money and then re-invest it somewhere else. This is how they pay interest to the customers and make money for themselves.

Understand the costs: Without any physical branches, the expenses of running a bank come down with a neo bank. As a result, you can open a neo bank account with lower transaction fees or withdrawal costs, etc

Consider the interest rates: Find out the different rates of interest offered by neo banks. Most of these banks provide above-average interest rates, especially for their savings accounts.

Find the trade-offs: Just like other industries, it is natural that you will trust the tried and tested. A feeling of security comes with experience, which not many neo banks can offer currently.

How RBP Finivis is helping the rural population in India?

RBP Finivis has facilitated the expansion of access to financial services for hard-to-reach population and businesses. The services are provided even in isolated areas. The increased collection of customer information enables providers to design dematerialized financial products better suited to the unbanked.

As the name indicates, we are a Rural Banking Programme, and we emphasize making financial services easy for rural people. We are bringing the change by providing mATM i.e. micro ATM services in India also referred to as mini ATM services. Our many such products and services have helped rural people in making their transactions, payments, and businesses easy to perform.

The company's upcoming product is MEGO Beneficence in rural and urban area where individuals and businesses must be able to access financial products and services irrespective of their net worth or company size.

Kumud Das
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