Financial wellbeing is what Abhishek Gandhi is aim to offer – AN interview with the co-founder of FatakPay
1. Virtual credit facilities to the masses, how this will change the way masses in India do daily transaction? will it also help the safeguard from going for unscrupulous loan apps??
A large percentage of our population earn less than 2.4-3L per annum and are not the focus segment of the organized lending fraternity. This segment is consistently besieged with various financial difficulties and lack of awareness on how to achieve their financial goals. Further their only access to credit is either through unorganised money lenders or unscrupulous loan apps charging exorbitant interest rates. which FatakPay is seeking to solve. We are focused on creating a platform for Financial Wellness which enables access to timely credit at very reasonable costs to meet their day-to-day requirements, create awareness on financial discipline and planning among other things.
Our entire digital approach which provides multiple payment options: including Bank Transfers, UPI based payments, Bill payments, etc. also delivers ease of use and promotes digital transactions in this segment.
- How important is instant credit in a post-pandemic economic situation, according to FatakPay?
After the COVID, banks and NBFCs reduced the amount of loans they distributed, which led to an increase in nonperforming loans. Lenders were obliged to restrict the amount of new loans they disbursed and to tighten risk controls as a result of rising inflation, unemployment, and consumers’ inability to repay their debts. On the other hand, because of this, gaining access to financing was made even more difficult for this sector, at a time when it was truly needed the most.
This increased demand and reduced supply has made access to credit more important, while also highlighting the importance of maintaining financial discipline during times of crisis. We, at FatakPay are making an effort to aggressively address both of these issues and to be available to the customer when they are in need. It is reasonable to expect that, if not during the pandemic itself, then at the very least following COVID, the digital lending industry is already going through a period of expansion.
- Do you believe a B2B2C product such as FatakPay will perform better in India? Why is this so?
FatakPay’s unique offering and especially unique target audience makes it different from any other fintech business out there- It empowers employees to access small credit limits during the month when they run out of cash to meet their day to day expenses.
These are the relevant issues amongst low to middle- income, early job entrants and such financial stress directly has an impact on job productivity, attrition and overall efficiency of an employee, the cost of all this is borne indirectly by the Employer.
We are working closely with the Employer and create an eco-system for Employee Financial Wellness through its offerings. This has resulted in lower attrition and higher productivity among employees.
- FatakPay’s Potential in the Virtual Credit Market in India, and goal ?
We want to drive financial inclusion by being the go-to partner for Bharat’s customers for all their financial needs. The approach of onboarding customers through their employer along with providing unique credit availability and payment functionality, differentiates it amongst any other fintech, uniquely. Customers can access monthly revolving credit with options to not only scan & pay but also UPI Transfers, bank transfers, bill payments, etc. through Fatakpay.
Moreover the product offers multiple benefits like free insurance cover from ICICI Lombard and access to more than 150+ nationwide brands and 2000+ hyperlocal merchants providing basic needs like healthcare, essentials and more – wherein the customer can avail discounts, offers, rewards, every month making FatakPay a holistic financial wellness destination.
Our vision & mission is to solve for overall Employee Financial Wellness which includes timely credit availability, educating and creating awareness on concept of small savings & investment for future and security in terms of insurance and providing them the same.
- Other than instant credit, what are the other fintech products offered by FatakPay?
Monthly revolving credit lines is the basic product that we are offering to our customers. In addition to providing with free insurance and a sizeable rewards and incentives programme, we are also providing a wide range of other services, such as scan and pay via UPI, bank transfers, and payments for utility bills, among others. It will provide greater ticket size EMI based loans, personal loans, 2-wheeler / affordable home finance, micro-insurance and micro-investment products as it deepens its interaction with the consumer. This would allow it to meet all of our customer’s financial needs.
