Kotak Mahindra Bank is taking on SBI YONO, Paytm with its Nubank. | Tech US News

[ad_1]










In August, Kotak Mahindra Bank (KMB) held an internal review meeting at its headquarters in India’s financial capital, Mumbai. The meeting began with a presentation on Kotak811 — the bank’s digital avatar — by Jay Kotak, son of Managing Director and Chief Executive Uday Kotak. The message was clear: the unit, conceived as a customer acquisition tool, now took center stage at the bank.

The bank’s annual report for the year ending March 2022 cites Kotak811, which was started in March 2017 as a small team with the aim of offering customers zero-balance savings accounts and cross-sell products, a As a semi-autonomous unit focused on rapid growth. The unit now has a separate website that describes it as a “fully digital, in-your-phone, mobile bank”.

But KMB has even bigger plans for Newbank. “Uday Kotak spoke about the Reserve Bank of India’s (RBI) plan to grant digital banking licenses in 2023. It gave us a glimpse into the bank’s plans for Kotak 811,” said a former employee. said who did not want to comment on his former. employer publicly.

This lofty dream is a natural consequence of Kotak811 moving into its fifth year of operations. In the quarter ending March 2022, New Bank under KMB opened five accounts for every 10 through HDFC Bank. It also issued four credit cards against every 10 issued by the country’s largest private bank.

Not just banks, Kotak811 is also targeting fintechs in India. It distributed nearly three-quarters of loans by value as Paytm*.

While more than a dozen neobanks or

Digital Bank Intermediary


Digital Bank Intermediary

Ken
RBI and BFO check New Banks 👀.
Read more


As Fi Money, Jupiter, Open, and Razorpay partner with traditional banks in India, the concept of digital-only banks is still taking shape. A digital bank offers a complete set of online services without any physical branches.

In July, government think tank NITI Aayog

stood for


stood for

Niti Aayog
Digital Banks: A Proposal for a Licensing and Regulatory Regime for India
Read more


In its report, Full Stack Digital Banks presented a roadmap for the licensing and regulatory regime for digital banks in the country. If the banking regulator allows digital banks, Kotak811 could be a prime contender to apply for the licence.

Earlier also at an investor meeting at the Sofitel Hotel in Mumbai’s Bandra-Kurla Complex (BKC) on May 24, Uday Kotak revealed that Kotak811 had surprisingly good figures for the year ending March 2022. Handed over the baton to Jay. Jay first compared New Bank with India’s largest private sector bank and largest listed fintech. Earlier, Kotak811 was largely an acquisition engine.

[ad_2]

Source link

Please disable your adblocker or whitelist this site!