In the last few years ,Fintech firms have significantly increased financial inclusion by utilising the current financial ecosystem and cutting-edge technologies to make banking easier, more convenient, and more affordable for millions of unbanked and underbanked Indians. The issue, however, is that despite making up the majority of the country’s population—68%—and living in villages, the rural population is still not adequately served by digitalization. The rate of literacy is lower in rural areas. The rural economy is less structured than that of urban areas despite having higher cash usage. The rural population prefers to exchange money in cash for payments and other needs, despite being a part of India’s modernization and developing economy. Due to a lack of financial literacy, they are unable to use contemporary transactional methods. Even the younger generation in rural areas lacks access to information about contemporary and technologically advanced lifestyles. Aiming to bridge this gap, Banksathi, a fintech company through their network fostering the financial awareness through their networks of BankSathis to improve financial lives and create simple guidelines for ongoing financial security. Mr. JItendra Dhaka, Founder, BankSathi in discussion with CXOToday share more insights on the same.
- The idea behind BankSathi
The Indian fintech industry has experienced tremendous expansion as a result of an increase in the number of investors seeking investment opportunities and a rising enthusiasm and awareness among consumers to make use of fintech goods. However, just 10 percent of the population in India is currently familiar with the goods offered by fintech companies. The traditional model of fintech that is followed by businesses in India places a heavy emphasis on the use of family or references as customers. Through the distribution of fintech goods and the generation of sales through financial advisers, BankSathi is attempting to change the business paradigm for the Indian fintech industry.
2.What kinds of problems are resolved by BankSathi?The Problem –
- There are almost 190 million individuals in India who do not have bank accounts; barely 3 percent of Indians have credit cards, but there are 300 credit cards for every 100 persons in the United States. When compared to the United States, which has an 8.7 percent penetration rate for non-life insurance, India only has 1 percent. The situation is the same with regard to several other types of financial instruments.
- Customers have a healthy amount of scepticism regarding the reasons and incentives offered by banks and other financial institutions. The people are confused about the kind of financial goods that they should purchase. People lack self-assurance since they do not have access to information about the many financial options available. The customer is looking for someone they can trust and assistance.
- Due to the high expenses of both infrastructure and labour, financial institutes cover a very small portion of the world’s landmass. Because 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 advisers to develop their digital presence and begin selling financial goods online. It does this by constructing a LIC layer that sits over each and every financial institution. Offers a selected selection of financial products and services, as well as information and digital processes, customer lead management, and complete insight into status. By capitalising on their already established clientele and utilising social media, advisors can generate significant income. Banksathi is providing its advisers with possibilities to earn consistent streams of revenue.
3.Could you provide additional information on the training your financial advisors were required to complete?
We provide all of the specifics of the financial products that are available on an application that we have developed called “BankSathi.” This application is available on our website. It consists of the product’s fundamental particulars, features, terms and conditions, application procedure, frequently asked questions, and user journey video. In addition to this, we host daily webinars in which our specialists from the Learning and Development department go live with advisers and provide in-depth product training. Not only do these professionals coach people on how to sell their products, but they also teach how to sell themselves to their consumers and how to enhance their sales.
4.How BankSathi is using digital technology in evolving the Fintech industry?
With the help of tech automation simplifying the lengthy tasks which provides lots of benefits from cost and time saving which enables staff to focus on other key priorities. It improves efficiency and speed of service, as well as provides a better user experience to advisors.
-We are verifying PAN number, Aadhaar card online
-We are integrating OCR technology
-Tracking each and every advisor activity using our custom CRM
-Tracking Real-time leads in our application
-Customer filter mechanism for each product
5. How many financial advisors are now employed by your business?
At this time, we have onboarded over 7,00,000 advisors from 17,000 different pincodes located all throughout the country. The majority of these advisors are either small business owners or former bankers, DSA partners, insurance brokers, or professionals working in BFSI.
6.How is AI playing a vital role in financial advisors life?
In our platform , customers are guided to the appropriate financial product from the appropriate bank or NBFC, the company is well positioned to experience explosive growth in the near future. Additionally, because it is made possible by AI, it is also a thoughtfully accented concept in which individuals (from all the profiles) are offered career options as a financial advisor and can make income flexibly. AI also helps advisors understand the actual need of customers as well as the potential of selling products to earn the most possible profit.
7.What future plans do you have?
BankSathi is always working to improve people’s understanding about 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 purchasing any type of financial product, Banskathi will be the most efficient and reliable platform available. Customers will get support throughout the entire process from its tech-enabled advisors, beginning with the search for the ideal product and continuing through the selection and purchase processes. Our mission is to generate 10 million micro-entrepreneurs, and our vision is to make it possible for people in the “Real Bharat” to have access to various financial products.
8.You have been granted an IRDAI insurance licence. What are your plans for your insurance product portfolio?
In the following days, we are planning to establish partnerships with insurance firms ranging from the smallest to the largest level. We have already begun the process, and the Insurance category will be available on the BankSathi app in a very short amount of time.
On the application platform itself, Advisors will have the ability to qualify for POSP and obtain the licence. The advisors will receive training from the professionals. Concerning the test, we are going to give it to them so that they may expand their knowledge and so that we can ensure that they will supply accurate information to their consumers. As we have seen, insurance was very helpful during a pandemic because it was a financially challenging time. Especially Term insurance when it comes to protection, financial securities, Tax benefits etc.
Our user-friendly application gives In-depth Advise and Research recommendations to advisors. It will help them to earn retainer income and they will educate more people about insurance
Right now Insurance team has Tied up with 9 Insurance companies
-3 Life Insurance
-3 General Insurance
-3 Health Insurance
