Neo banks bring forth remarkable set of offerings making the banking and financial experience more simple. In this segment, Payzello is an emerging name which redesigns banking for the digital age. With its range of offerings, it acts as an hub for all the financial needs of its customers, says Pruthiraj Rath, CEO, Payzello, in conversation with Elets News Network (ENN).
Please elaborate on the idea of Payzello – business model and offerings.
Payzello is an evolved platform, which redesigns banking for the digital age. With its range of offerings, it acts as an intelligent hub for all the financial needs of its customers.
Payzello enables its customers to open a savings bank account within 3 minutes. The highly convenient banking offering incorporates significant security functionalities, for instance, the users are able to lock and unlock their card in real time, via its exclusive application. For this, there exists a direct partnership with the banks, where Payzello core banking solutions (CBS), integrate with the bank’s CBS. Payzello, also, offers a unique and powerful card, which serves the customer’s debit, credit and forex needs. In its bid to holistically assist its customers with financing needs, Payzello provides comprehensive expense management, by deploying AI and IFTTT powered assistance to track the expenditures and investments, effectively enabling saving.
• When is Payzello planning to launch its services and who will be the target audience for the same?
We are looking at an impending launch in November, this year. Payzello provides banking, financial planning and lending services to the Millennial Customer segment comprising of 200 million early salaried class and college students through a digital platform, which is currently not present as an option to them with PSU or Pvt Banks.
• What are the significant collaborations done by Payzello?
We have partnered with two leading Indian banks and NBFCs. Soon, we will be executing Memorandums of Understanding with 10 largest Universities in India. Furthermore, we are in the midst of discussions with 5 mid-corporate companies, on the B2B sales strategy.
• How does Payzello differentiate itself from the existing neo-banks in the market?
Payzello provides a unique set of offerings. Through the Robo Advisory and Robo Customer service modules, it provides distinctive platform offering personalized banking and financial management services to the customers. Payzello offers its customers a first of its kind, 3 in 1 card, allowing them to access its utility as a debit, credit or forex card. The platform utilizes gamification features to not only help customers in transactions but also assists them in saving and financial planning with the money they have in their savings account. Furthermore, Payzello provides the customers including the new to credit customers, with a dynamic credit line as and when required through the partnered Financial Institutions. It’s the unique blend of product and offerings, designed to facilitate convenient banking and financial service experience to its customers that sets Payzello apart in the competitive space.
• What are the future plans of Payzello including, capital raising plans, if any?
Payzello is raising an undisclosed large amount from family office, venture fund and top CXO’s from Europe based Neo banks. We are in the mid stage discussion with ventures funds to raise additional $8M in the coming nine months.
With its launch in November 2020, Payzello is expecting to on board 1.20 lacs customers in the first year of operations. The launch year is also being looked at as a period to fully operationalize our lending arm.
• How has neo-banking sector evolved and what is the way forward?
Neo banks as fin-tech firms bring forth remarkable set of offerings rendering the banking and financial experience more convenient and simple. A lucrative sector as such is imminent to receive traction. The Medici India FinTech Report 2020 states that total funding raised by the Indian Neobanks so far totals more than $139.8 million. With its fundamentally digital infrastructure, neo banks possess the ability to provide seamless services, eliminating physical processes and extensive documentation, rendering the entire banking experience convenient. All these perks, while ensure security. Considering the circumstances and the time, the digital adoption in banking is most sought after by the users, and neo bank happens to offer just that. This, coupled with increasing internet penetration and surging digital literacy, are the reasons why the adoptions of fintech and neo banks, in particular, are rising at a tremendous pace. According to PwC, globally neo banks are forecasted to grow at 46% CAGR over the 2019-2026 period, generating ~$400bil by the end of it. With such an innovative set of services and an untapped market, neo banks are looking at an opportunity filled period to come.
• In the context of Covid-19, how have you tweaked your outlook towards the market? What is your view?
While Covid-19 resulted in a slight delay in the launch of our operations and the fund raising, it wasn’t perceived as a roadblock. We worked towards strengthening our business model and technological expertise. We are now looking at a robust platform, ready to serve our significant target customer base, the under graduate and post graduate college students, who will be resuming/beginning their in-campus education shortly. This digitally empowered group comprises of the batches of 2020-21 and 2021-22, accounting for a pool of around 70 million.