#BigChallenge4SmallFinanceBank – RURAL People may not put their Savings where they have parked their Liabilities. How to deal with it ? “Small Finance Bank #SFB Strategy” Well drafted regulations to increase Financial Inclusion, and the licenses are given to MFIs, LABs (Local Area Banks) etc which have strong hold in the intended segment and have years of experience in handling the operations. They can earn big fee on PSL Certificate selling as they have good hold on the area. Few restrictions may bind them which I feel is neccessary to keep them focussed on the segment which saves approximately in the range of Rs 1000-7000 per month. But would #SmallFinanceBanks be able to earn from this segment’s Saving ? I would say NO, they will also “Eye a Pie of the Corporate and Mid segment Saving and Salaries”. After all they have to be profitable for their Investors and Shareholders, while respecting the Mandate and Regulations in which they need to Operate. After All #BusinessOfBusinessIsToBeInTheBusiness SFBs as Model makes Business Sense 👍. They are Lending Experts, which is evergreen and always in Demand. But the Question Remains – How Many Accounts Would a Person Need to Open to get Financially Included ??
