New Delhi: Fino Payments Bank, which will soon complete one year of operations, has set expansion goals to increase its customer base across the country.
Earlier this month, the bank announced its plan to raise Rs300 crore by October-November. This plan is a major step towards achieving expansion goals, said Rishi Gupta, managing director and chief executive officer of Fino Payments Bank.
“The funds will mainly be used for new product development, digital initiatives, network expansion and product marketing. It will make Fino ready for the business opportunities and challenges ahead,” he said.
Introduction of new digital offerings that complement their physical touch points to provide customers seamless banking experience will prove to be revolutionary in expanding footprint, Gupta said.
The bank, which has a customer base of 1 million, plans to increase this figure to 3 million by March next year on the back of the network expansion.
“On the network side, we plan to add 100 branches to the existing 425 and 12,000 merchant points to the 25,000 points that we now have across the country,” he said.
The funds will be raised by Fino PayTech, the parent company of the bank, according to Gupta. Last year, the company had raised Rs400 crore for the bank’s launch.
The bank will soon shortlist merchant-bankers for the new round of funding, Gupta said.
Currently, the bank processes transactions worth Rs100 crore a day and plans to handle Rs200 crore by March next year.
Fino, which was a remittance service provider, received the authorisation from the Reserve Bank of India (RBI) to operate as a bank in March 2017. It started operations in September after its launch in July last year.
Earlier this month, the bank introduced digital options for its customers, including online account opening, net banking, payments through unified payments interface (UPI) and payment of tolls at national highways using FasTag.
The bank mandates that customers have to maintain Rs1,000 as minimum balance and offers 4% interest on savings deposits. India has five other operational payment banks—Airtel Payments Bank, India Post Payments Bank, Paytm Payments Bank, Aditya Birla Idea Payments Bank and Jio Payments Bank Ltd.