BankBazaar, the world’s first multi-brand paperless platform for instant approval on financial products, is happy to announce that transactions on the site are unit economic positive. Yay!!
Now, what exactly is positive unit economics? When the revenue earned on a single transaction is higher than the cost incurred on that transaction, you are unit economic positive.
That’s definitely a step in the right direction when it comes to achieving profitability. So, what exactly is BankBazaar doing to get there faster? Several things.
For starters, BankBazaar is using India Stack, a technology platform that allows for the provision of presence-less, paperless, and cashless delivery of services. With the help of this technology, consumers will be able to buy financial products like Mutual Funds, Fixed Deposits and more, directly on their mobile phones.
In addition to providing customers with the e-KYC and e-Sign facility, the company also plans to integrate its service with the upcoming Digi-Locker facility. This will allow it to reduce the time it takes to process a new financial service from four to six days to just three minutes.
It doesn’t end there. The company is also simultaneously working on integrating core banking and insurance systems while educating banks to begin using the new paperless norms.
Speaking about the challenges, CEO of BankBazaar, Adhil Shetty said: “Banks say for the past 30 years a contract had to be physically signed, but we are now telling them a contract will be e-signed. They have never done it before. So the challenge we face is building technology bank by bank and product by product, and then telling them that there are 18 million visitors on our site and if you don’t provide a product, somebody else will.”
India Stack’s capability will allow it to lower the cost of selling financial products because it removes the need to deploy large teams of people to connect with customers. The major investments will be in technology, a one-time cost, but for which BankBazaar is planning to hire 400 people in the upcoming fiscal year.
In the next one year, the company intends to focus on lowering the cost of acquisition of customers and riding the wave of growing digital consumers in India.
“For now we are targeting those same estimated 40 million consumers who shop from e-commerce websites. It’s a start. Today we are targeting 18 million visitors on our site in March, and it makes sense to target those discerning people who already shop online,” added Shetty. “It’s a natural progression.”
Here’s something to chew on – apart from the massive cost savings, the conversion rates of paperless customers is three times higher than non-paperless buyers. Due to this, payouts from customers of paperless banking and financial services are higher. So, it makes sense for the company to go after these customers before offline buyers.
If you’re a customer in need of a financial product, like a Loan or Credit Card, now’s the perfect time to explore BankBazaar and make the most of the Maha March Bonanza that’s on till the end of March.
Apart from the exclusive Maha March deals on BankBazaar, you will also receive Amazon gift vouchers on the successful disbursement of Credit Card and Loan products applied for through the BankBazaar website. Credit Cards are eligible for an Amazon Gift Card worth Rs. 750. Personal Loans come with an Amazon Gift Card worth Rs. 1,000, Car Loans with an Amazon Gift Card worth Rs. 2,500, and Home Loans with an Amazon Gift Card worth Rs. 5,000.
Along with seamless, frictionless access to the right product, you can get customised products and offers; instant, paperless approvals; end-to-end services; and exclusive offers during the Maha March campaign. So, BankBazaar makes March the best time for you to take that step to secure your financial journey.
BankBazaar is the one-stop shop for all your financial needs. We host the widest range of financial products from over 75+ of the biggest public and private sector banks, Non-Banking Financial Companies (NBFC), and insurance companies in India. We get an average of 7,000,000 visitors per month to our website. BankBazaar raised USD 80M through funding from investors such as Amazon.com, Fidelity Growth Partners, Mousse Partners, Sequoia Capital and Walden International.
And you can, of course, contact us anytime you want and we will be happy to help you. Get in touch with our customer care on +91 44 66511800 (Monday-Saturday from 9 AM to 6 PM) or send us a WhatsApp message on +91 98848 08231. You can also email us at support@bankbazaar.com.
This article is based on and contains excerpts from the article ‘BankBazaar riding on India Stack to achieve faster profitability’ which originally appeared in the Business Standard.