Start-up Stars: How BANKIT is powering its financial inclusion movement

Adgully has been turning the spotlight on the entrepreneurs who fought against all odds to bring their dreams to fruition in our special series – START-UP STARS. We at Adgully wholeheartedly support the ‘Vocal for Local’ movement and have been featuring numerous local/ homegrown businesses, brands, and Apps in the country launched in the last few years.

BANKIT is an assisted B2B2C start-up company, having more than 129,000 outlets and branded stores across India to help citizens experience the easiest, fastest, and safest digital payment platform under one roof.

In an interaction with Adgully, Amit Nigam, Executive Director and COO, BANKIT, speaks about empowering the rural markets to enhance their economic opportunities, creating a win-win situation for both consumers and local entrepreneurs, investing in cutting-edge technology, and more.

What motivated you to establish BANKIT?

My professional journey has been both challenging and rewarding. I’ve always been passionate about financial inclusion and the transformative power of technology. My motivation to establish BANKIT came from witnessing the stark divide in access to banking and financial services between urban and rural areas, especially in a country as vast as India. Millions of people in rural and unbanked regions were excluded from the formal financial system, limiting their economic opportunities.

BANKIT was born out of a desire to bridge this gap. I saw an opportunity to leverage technology to provide financial and banking services to the underserved population, and at the same time, empower local entrepreneurs and shop owners. This approach not only improved financial inclusion, but also created employment opportunities in these areas.

What was the need for BANKIT from a consumer’s perspective? What is the core business proposition?

From a consumer’s perspective, BANKIT addressed several critical needs. In rural and unbanked areas, access to basic financial services like depositing and withdrawing money, transferring money, making utility bill payments, and even opening bank accounts was limited. People often had to travel long distances to access a bank branch, incurring costs and inconvenience.

BANKIT’s core business proposition was to make these services accessible through a network of local shop owners. Consumers could conveniently walk into these shops and avail a wide range of financial and banking services, effectively turning these shops into banking points. Our model focused on providing financial services where they were needed the most, creating a win-win situation for both consumers and local entrepreneurs.

What have been your key learnings so far? How do you see the BANKIT ecosystem progressing in 2023?

One of the key learnings from our journey with BANKIT has been the importance of building trust and relationships with local communities and shop owners. It’s not just about providing services, but also about understanding the unique needs of each region and adapting our offerings accordingly. Flexibility and customisation have been crucial to our success.

Looking ahead to 2023, I see the BANKIT ecosystem continuing to grow and evolve. We’re constantly working on expanding our service offerings, improving technology, and deepening our outreach like we recently partnered with LIC and SBI General Insurance to provide insurance services to people who can’t benefit from insurance services themselves. Many such new offerings like Loan, Prepaid Card solutions, etc., are coming soon with our customer-first approach.

With advancements in digital technology and increased smartphone penetration in rural areas, we’re excited about the potential for more sophisticated financial services. We also plan to continue partnering with financial institutions to bring a broader range of financial products to our customers, further enhancing financial inclusion.

What were the challenges that you faced in your start-up journey and how did you overcome them?

The start-up journey was not without its challenges. One of the major hurdles was building trust in the starting years and thus, building a network of local shop owners who could act as our service points for the end customers because trusting a new company with financial transactions was not easy for them. Many of them had never been involved in financial services before, and gaining their trust and cooperation was a significant challenge. We overcame this by offering training and support to these entrepreneurs and demonstrating the benefits of becoming a BANKIT partner.

Regulatory compliance and navigating the complexities of the financial services sector were also challenging. We worked closely with partners and banks to ensure that we met all the necessary requirements while maintaining a user-friendly and efficient service. Adapting to the diverse needs of different regions and communities was another challenge, which required a highly flexible and localised approach.

What are your plans to scale up your operations in 2024?

In the upcoming year, our primary focus will be on further expanding our services and reaching even more underserved areas by providing the best customer experience through our envisioned branded BANKIT outlets. We plan to invest in cutting-edge technology to enhance the user experience and the efficiency of our services. Additionally, we aim to introduce new financial products and partnerships to meet a broader range of affordable financial needs of our customers like loans, etc.

Furthermore, we’ll continue to strengthen our relationships with local entrepreneurs and communities, ensuring that they benefit from our partnership. We are committed to being at the forefront of the digital banking and financial inclusion movement, and we are excited about the opportunities and challenges that the future holds.