Banking News

Federal Bank: Partnership with fintech companies helping Federal Bank in a big way, says MD


Partnership with financial technology (fintech) companies is helping private sector lender Federal Bank in a big way to attract new generation customers and open around 15000 bank accounts every day across the country, managing director Shyam Srinivasan said.

“Fintech companies are mostly used for client acquisition for opening savings accounts. The bank generally opens around 15,000 savings accounts per day and 60% of them are through fintechs. These are all digital accounts,” he said.

Collaborating with the fintech companies turns out to be an important aspect of every bank’s growth strategy.

These accounts opened by the young customers who have just entered the job market may not have a significant cash balance at present but these accounts would help in attracting sizable deposits in the future, Srinivasan said in Kolkata on the occasion of the bank’s 50 year presence in the city of joy.

“The deposit war is quite intense and will continue to remain so,” he said, even as he believes that the deposit rates may have reached their peak.

The bank’s total deposits rose 23% year-on-year to Rs 2.33 lakh crore at the end of September while the gross advances was at Rs 1.96 lakh crore at the end of September registering a near 20% year-on-year growth. Srinivasan expects the loan growth to continue the momentum in the second half of the fiscal. On the asset side of the business, the wholesale book grew 17% to Rs 87,788 crore.”We have witnessed good demand from both the manufacturing and services sectors,” the MD said.


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