SFB bid: Fino to bet on merchant loans

Fino Payments Bank plans to use its network of merchants as the first set of customers to lend to, while also using them as loan collection points, if the regulator approves its proposal to convert into a small finance bank.

- Shayan Ghosh

In December 2023, Fino applied for the small finance bank licence and has about 1.8 million merchants providing financial services as agents of the bank. Rishi Gupta, managing director and chief executive, Fino Payments Bank, said in an interview that a significant portion of the merchants can operate as collection agent for loan repayments.

Gupta said the merchants will be used as loan collection points while the bank would also cater to the credit demand of these merchants. They run the bank's touchpoints and provide services like opening of bank accounts, cash withdrawal, and more. The other target base is its current base of 13 million customers, he said.