Fino Payments Bank receives RBI approval for Cross Border Remittance through Money Transfer Service Scheme

Fino Payments Bank Limited (BSE: 543386; NSE: FINOPB) ("Fino Bank" or "the Bank" or "Fintech") has received the RBI approval for commencing International Remittance business under the Money Transfer Service Scheme (MTSS). The Bank will be undertaking inward cross-border money transfer activities and will be partnering with an Overseas Principal. It has also received the approval to partner with one of the largest global remittance service providers as its Overseas Principal.

According to a recent World Bank release in November 2021, India is expected to be the largest recipient of remittances globally in 2021 with expected receipt of USD 87 billion. This is expected to grow by 3% in 2022 to USD 89.6 billion as a large number of workers are expected to return to the gulf countries. India is followed by China, Mexico, Philippines, Egypt, Pakistan and Bangladesh.

The customer segment of Fino Bank at the middle of the pyramid is targeted to families of many of the people working in foreign countries. They typically remit money back home to meet regular family expenses. They would already be using the services of Fino Bank like micro-ATM or Aadhaar Enabled Payment Services (AEPS) in some form. With this product, they will now be able to directly withdraw money remitted by their family members abroad at the nearest Fino Bank neighbourhood merchant point.

Major Ashish Ahuja, the Chief Operating Officer said, "Continuous product innovation is one of the core pillars of our model. International remittance further enhances our transactions based product offerings. We will be ready to offer the inward remittance services to our customers by Q1 FY23. In sync with our digital strategy to enhance customer experience, we will also look at having this product on our mobile application as well.

Going forward Fino Bank will be open to partnering with more leading money transfer operators (MTOs) to widen its horizon across different countries. The Bank also has plans to commence outward remittance services soon.

"There is a major inward remittance corridor in states like Gujarat, Punjab, Kerala, Uttar Pradesh and Bihar. We already have scaled up our merchant presence in all these geographies. We are therefore confident that the new offering will gain traction very quickly. We also expect to shore up more subscription based savings accounts due to this initiative as customers would prefer to park the remitted money in a Fino Bank account itself", added Mr. Major Ahuja.

Fino Bank had a network in excess of 8 lakh merchants across the country as on 30th September 2021. These merchants typically provide banking services to customers like opening savings accounts, depositing cash, transferring money, dispensing cash via micro-ATMs or AEPS mechanisms and collecting cash on behalf of various institutional clients among others. With International Remittance product, the merchants will be having another offering on their shelf which would over a period further augment their income leading to strengthening of Fino Bank robust distribution network.

Fino Bank is a leader in product innovation within the digital payments space and has disclosed in November 2021 in its second quarter investor presentation about a pipeline of new products which it expected to launch in the near future. The Bank had emphasized that new products like International Remittance alongside various cross sell offerings like mutual funds, loans, fixed deposits and others is expected to contribute to its bottom line as part of its strategic vision of FY23 and beyond.

Shares of Fino Payments Bank Limited was last trading in BSE at Rs. 370.75 as compared to the previous close of Rs. 375.55. The total number of shares traded during the day was 24770 in over 1966 trades.

The stock hit an intraday high of Rs. 380.00 and intraday low of 370.00. The net turnover during the day was Rs. 9282320.00.

Source : Equity Bulls

Keywords

FinoPaymentsBank FinoPB RBIApproval MTSS InternationalRemittance