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Airtel Payments Bank is planning to cross-sell products like insurance and third party loans through its banking points over the next one year.
Because payments banks can not lend; it is expected that cross-selling banking products will be a revenue stream for these operators. These banks are allowed to take deposits – savings accounts.
According to Shashi Arora, MD and CEO, Airtel Payments Bank, the plan is to start with “something simpler” like life insurance products and loans from banks and non-banking financial companies (NBFCs).
Other mature offerings like mutual funds will be explored at a later stage.
“Over the next one year we will explore chances of having third party products. We will explore tie-ups for insurance, mutual funds and loans at some stage,” Arora said here in the city.
Airtel Payments Bank current offerings include deposit and withdrawal of money, transfer of funds, and payment of utility bills, among others.
Biz Model
The present revenue stream includes, interest on investments; and fees on cash withdrawals (made from savings accounts).
Investments are made with the deposits that the company receives across its savings bank accounts. As per norms, 75 per cent of customer deposits will have to be parked in government SLR securities.
The bank has around 250,000 banking points (of which 21,000 are there in Bengal); and close to 20 lakh savings accounts (including 150,000 in the State).
The future plan is to take up these banking points to 5 million.
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