Fincare Small Finance Bank commences banking operations, ready to usher an era of ‘Rurban’ banking
Fincare aims to carry on Small Finance Bank business
Fincare Small Finance Bank Limited (earlier known as Disha Microfin Limited), has commenced operations as a Small Finance Bank on Friday, the 21 st of July. Fincare is among the 10 entities out of 72 which received RBI’s nod in 2015 for converting to a Small Finance Bank.
The bank has done a soft-launch with a full-service branch each at Bangalore and Ahmedabad, and proposes to open 26 branches over the next 3 months. With these additional branches, primarily in semi-urban locations, the bank will diversify from being a rural player to a ‘rurban’ one.
The newest bank on the horizon is keen to make its presence felt with attractive interest rates. It will offer interest rates of up to 9% for term deposits, amongst the highest rates in the sector. Senior citizens will earn an additional 0.5%. The bank aims to create differentiation using its unique 3D approach viz. deposit rates, doorstep service and digital solutions.
Fincare SFB MD & CEO, Mr. Rajeev Yadav said that the bank is in the final stages of rolling out its state of the art technology and processes. He mentioned, “All the technology, connectivity and processes will be tested over the next few weeks to ensure seamless and secure operations before we open the bank to the public”. Further, he added, “Along with bank branches, there will be bio-metric recyclers, internet and mobile banking services to enable 24X7 banking for our customers.”
On the assets side, apart from the micro finance business, the bank will focus on growing the secured portfolio, comprising of Loans against Property (LAP) and Loans against Gold (LAG). Commenting on this, Mr. Yadav stated that the aim is to grow the share of secured loans over the next few years. “We are continuing to invest significantly on technology to ensure that credit decisions are communicated to customers instantly, and processes are simplified and paperless. These investments will help us cater to a wider base of hitherto under served micro and small enterprises.”
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