FINO PayTech’s microfinance business targets Rs. 1000 crore AUM

FINO PayTech’s microfinance business targets Rs. 1000 crore AUM

Focus on eKYC enrollments, innovative products and deeper rural reach

Mumbai, Sep 20, 2016: The growth of microfinance business in the last few years has been encouraging. The trends indicate a huge potential for growth owing to microcredit demand from the hinterlands of the country. Riding on this wave is a payments technology company FINO Paytech’s lending arm.

With a presence spread across 74 districts in the 5 states of UP, MP, Bihar, Maharashtra and Karnataka, FINO offers microfinance in rural areas through its own NBFC Intrepid, as well as BC channel on behalf of other financial institutions.

Since the start of lending operations in 2010, FINO has disbursed close to Rs. 2000 crores to around 12 lakh rural borrowers. In August 2016, the business crossed the milestone of Rs. 500 crores loan portfolio with Intrepid accounting for 70%. Intrepid is expected to cross Rs. 500 crore AUM later this year, which makes it a systematically important NBFC under RBI classification.

Reiterating the company’s focus on microfinance business, Mr. Rajeev Arora, COO & Head of Lending business, FINO PayTech said, “Microfinance as a product is critical for our growth and is of strategic importance for us in our payments bank journey. We will work closely with our partners in developing innovative credit products and target new customer segments in the geographies we operate in. In the next 12 months we intend to double our AUM to Rs. 1000 crores by intensifying our efforts in customer acquisition and loan disbursement.”

To achieve this ambitious target, the company is enrolling customers through Aadhaar-based eKYC for reducing fraud risk and speed up the process.

Going forward the company plans to penetrate deeper into the existing geographies and reach out to the financially excluded with innovative products like individual loans to MSME segment. Currently, loans are offered on JLG model to over 3.5 lakh rural women borrowers.

FINO’s lending business has some of the leading banks and NBFC as partners. Some of them being SBI, IDBI, Karur Vysya, YES Bank, Reliance Commercial Finance, South Indian Bank, L&T Finance, Dena Bank, TATA Capital and IFMR.

About FINO PayTech:

FINO PayTech is a payments technology solutions provider to banks, financial institutions and MFIs. Together with its extensive service delivery network of 30000 transaction points, FINO facilitates access to financial services to the unbanked and un-served segments of the population. It services over 28 million active banking customers spread across urban and rural areas in the country providing a range of financial services viz savings, remittance, insurance, credit etc. It is one of the recipients of in-principle approval from RBI to start a payments bank. (www.finopaytech.com)

Intrepid Finance and Leasing Pvt. Ltd

Intrepid Finance and Leasing Pvt. Ltd is a non-deposit taking NBFC-MFI registered with the RBI. The company is engaged in the business of joint liability group (JLG) based micro-loans providing affordable micro-credit to the underserved and un-served women population of the country. The credit extended is utilized majorly in agriculture and allied activities as well as small businesses and is classified under priority sector lending (PSL). (http://www.Intrepid.in/)