Over the past few years, Fintech companies have dramatically increased financial inclusion by using the current financial ecosystem and advanced technologies to make banking easier, more convenient and more affordable for millions of unbanked Indians and underbanked. The problem, however, is that despite constituting the majority of the country’s population – 68% – and living in villages, the rural population is still not sufficiently served by digitalization. The literacy rate is lower in rural areas. The rural economy is less structured than that of urban areas despite a greater use of cash. The rural people prefer to exchange cash for payments and other needs, although it is part of the modernization and development of the Indian economy. Due to a lack of financial knowledge, they are unable to use contemporary transactional methods. Even the younger generation in rural areas does not have access to information on contemporary and technologically advanced lifestyles. In an effort to bridge this gap, Banksathi, a financial technology company through its network, promotes financial awareness through its networks of BankSathis to improve financial lives and create simple guidelines for continued financial security. Mr. Jitendra Dhaka, Founder, BankSathi in discussion with CXOToday share more ideas on the same.
- The idea behind BankSathi
India’s fintech industry has seen tremendous expansion due to an increase in the number of investors seeking investment opportunities and growing consumer enthusiasm and awareness to utilize fintech products . However, only 10% of the Indian population is currently aware of the products offered by fintech companies. The traditional fintech model followed by businesses in India places a heavy emphasis on using family or referrals as customers. Through the distribution of fintech products and generating sales through financial advisors, BankSathi is trying to change the business paradigm of the Indian fintech industry.
2. What kinds of problems are solved by BankSathi?The problem –
- There are nearly 190 million people in India who do not have a bank account; barely 3% of Indians have credit cards, but there are 300 credit cards for every 100 people in the United States. Compared to the United States, which has a penetration rate of 8.7% for non-life insurance, India has only 1%. The situation is the same for several other types of financial instruments.
- Customers are highly skeptical of the reasons and incentives offered by banks and other financial institutions. People are confused about what kind of financial assets they should buy. People are insecure because they don’t have access to information about the many financial options available. The client is looking for a trusted person and assistance.
- Due to high expenditure on infrastructure and manpower, financial institutes cover only a very small portion of the global landmass. Since consumers have lower levels of technological literacy, selling financial products to them requires a more human approach.
The solution –
BankSathi is a technology platform that enables financial advisors to grow their digital presence and start selling financial goods online. It does this by building an LIC layer that sits on top of each financial institution. Offers a curated selection of financial products and services, as well as digital insights and processes, lead management and a comprehensive status overview. By capitalizing on their already established customer base and using social media, advisors can generate significant revenue. Banksathi offers its advisors the ability to generate consistent revenue streams.
3. Could you provide additional information on the training that your financial advisors had to undergo?
We provide all the specifics of the financial products available on an application that we have developed called “BankSathi”. This application is available on our website. It consists of basic product details, features, terms and conditions, application procedure, frequently asked questions and user journey video. In addition to this, we host daily webinars where our Learning & Development specialists are live with advisors and provide in-depth product training. Not only do these professionals advise people on how to sell their products, but they also teach how to market themselves to their consumers and how to increase their sales.
4.How does BankSathi use digital technology to evolve the Fintech industry?
With the help of technology automation, simplifying time-consuming tasks offers many benefits in terms of saving time and money, allowing staff to focus on other key priorities. It improves efficiency and speed of service, while providing a better user experience for advisors.
-We check PAN number, Aadhaar card online
-We integrate OCR technology
-Follow-up of each advisor activity using our personalized CRM
-Real-time lead tracking in our app
-Client filtering mechanism for each product
5. How many financial advisors are currently employed by your company?
Currently, we have onboarded over 700,000 advisors from 17,000 different PINs located nationwide. The majority of these advisers are either small business owners or former bankers, DSA partners, insurance brokers or professionals working within the BFSI.
6. How does AI play a vital role in the lives of financial advisors?
In our platform, customers are guided to the appropriate financial product from the appropriate bank or NBFC, the company is well positioned for explosive growth in the near future. Additionally, because it is enabled by AI, it is also a thoughtfully accentuated concept in which individuals (of all backgrounds) are presented with career options as a financial advisor and can generate income flexibly. AI also helps advisors understand real customer needs as well as product sales potential to make the most profit possible.
7.What future plans do you have?
BankSathi always strives to improve people’s understanding of the importance of financial literacy as well as the range of financial products available to them and the extent to which they will be used in the future.
When it comes to buying any type of financial product, Banskathi will be the most efficient and reliable platform available. Customers will receive support throughout the process from its tech-savvy advisors, starting with finding the perfect product and continuing through the selection and purchase processes. Our mission is to generate 10 million micro-entrepreneurs, and our vision is to enable the people of “Real Bharat” to have access to various financial products.
8. You hold an IRDAI insurance license. What are your plans for your portfolio of insurance products?
In the coming days, we plan to establish partnerships with insurance companies ranging from the smallest to the largest level. We have already started the process, and the Insurance category will be available on the BankSathi app in a very short time.
On the application platform itself, advisors will have the opportunity to qualify for POSP and obtain the license. Advisors will receive training from professionals. Regarding the test, we will give it to them so that they can deepen their knowledge and we can ensure that they will provide accurate information to their consumers. As we have seen, insurance was very useful during a pandemic because it was a tough time financially. Especially term insurance for protection, financial security, tax benefits, etc.
Our user-friendly app gives In depth Advise and seek recommendations to advisers. This will help them earn retainer income and they will educate more people about insurance
At present, the insurance team has partnered with 9 insurance companies
-3 life insurance
-3 General insurance
-3 Health insurance