Fintech platforms have been one of the catalysts for bringing the underserved into a secure financial umbrella in India. FatakPay is a FinTech startup that aims to enhance “financial wellbeing” by enhancing the availability of credit. Fast, easy, interest-free and secure technology platform software enables users to access from any mobile device and caters to both online and offline needs. Linguistically versatile, it is an inherently plus for people who communicate in their local languages. Payments are accelerated through UPI and QR codes. We had a detailed chat with Abhishek Gandhi, co-founder of FatakPay, to find out more about the virtual and market credit solutions in India that have been available since Covid.
1. A virtual credit facility for the masses, how will this change the way the masses in India conduct day-to-day transactions? Will it also help protect against going for unscrupulous loan applications??
A large percentage of our population earns less than 2.4 to 3 liters per year and they are not the part of the regulated lending association’s focus. This part is constantly surrounded by various financial difficulties and lack of awareness on how to achieve their financial goals. Moreover, their only access to credit is either through unregulated money lenders or unscrupulous loan applications charging exorbitant interest rates. Which FatakPay seeks to solve. We focus on creating a platform for financial wellbeing which allows timely access to credit at very reasonable costs to meet their daily requirements, creating awareness of financial discipline and planning among other things.
Our fully digital approach that offers multiple payment options: including bank transfers, UPI-based payments, bill payments, etc., also provides ease of use and enhances digital transactions in the sector.
- How important is instant credit in a post-pandemic economic situation, according to FatakPay?
After COVID, banks and non-bank financial firms reduced the volume of loans they distributed, which led to an increase in non-performing loans. Lenders were required to limit the amount of new loans they disbursed and to tighten risk controls due to rising inflation, unemployment, and the inability of consumers to repay their debts. On the other hand, for this reason, it has become more difficult to obtain financing for this sector, at a time when it was really needed most.
This increased demand and decreased supply has increased the importance of obtaining credit, highlighting the importance of maintaining financial discipline in times of crisis. We, at FatakPay, make an effort to aggressively address these two issues and to be available to customers when needed. It is reasonable to expect that, if not during the pandemic itself, then at least after COVID, the digital lending industry is already going through a period of expansion.
- Do you think a B2B2C product like FatakPay will do better in India? Why is it so?
FatakPay’s unique offering and particularly unique target audience make it different from any other fintech business – it enables employees to reach small credit limits during the month when they run out of cash to meet their daily expenses.
These are relevant issues among low-to-middle income, early entrants, and this financial stress has a direct impact on job productivity, attrition and overall employee efficiency, and the cost of all of this is indirectly borne by the employer.
We work closely with the employer and create an ecosystem of employee financial wellness through their offerings. This has resulted in reduced attrition and increased productivity among employees.
- The potential of FatakPay in India’s default credit market, and its objective?
We want to drive financial inclusion by being the partner of choice for Bharat clients for all their financial needs. The approach of accommodating customers through the employer along with providing a unique possibility of credit and payment functions, uniquely sets it apart from any other financial technology. Customers can access monthly revolving credit with options of not only scanning and payment but also UPI transfers, bank transfers, bill payments etc. through Fatakpay.
Moreover, the product offers multiple benefits such as free insurance coverage from ICICI Lombard and access to more than 150 brands nationwide and more than 2,000 local merchants providing basic needs such as healthcare, necessities and more – where the customer can take advantage of discounts, offers and rewards, every month Make FatakPay a comprehensive financial wellness destination.
Our vision and mission is to find comprehensive solutions for employee financial wellness which includes timely availability of credit, educating and creating awareness about the concept of small savings and investing for the future and security in terms of insurance and provision.
- Other than instant credit, what other fintech products does FatakPay offer?
Monthly revolving lines of credit are the primary product we offer to our customers. In addition to providing free insurance, a rewards program and great incentives, we also offer a wide range of other services, such as scanning, UPI payments, bank transfers, utility bill payments and more. It will offer larger EMI-based loans, personal loans, two-wheel/affordable real estate financing, micro-insurance and micro-investment products as it deepens its interaction with the consumer. This will allow it to satisfy all the financial needs of our clients.
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