The Paysack Fintech Platform brings digital financial services across 4 core areas for startups and Small and Medium Enterprises (SMEs):
Banking: wallets, cards, payments, accounting and expense management.
Wealth Management: demat account, trading account, funding the account, portfolio management and reports, robo-advisory and more.
Lending: line-of-credit, loan origination and management systems to borrow from banks or other financial institutions.
Insurance: sachet / micro loan products, management, bundled products, claims and settlements.
Neobank for Startups and SMEs
A neobank is a kind of digital bank without any physical branches and one gets access to various banking services entirely online. In India neobanks are primarily fintechs who own the customer onboarding and experience through sleek UIs. They are however providing this service by being powered by a bank. Neobanks have taken off in India bringing in millions of dollars in funding across both consumer and SME neobanks.
Retail/consumer neobanks like Fi and Jupiter have launched their savings account in partnership with Federal Bank while Niyo launched their offering with Equitas Small Finance Bank. Gen Z neobank – Fampay on the other hand is powered by IDFC Bank.
SME neobanks like RazopayX or Open have multiple bank integrations and thus able to provide current accounts for SMEs/startups. This space is heating up with UK-based Tide also entering India to offer their SME neobanking solutions.
What makes these neobanks better than opening traditional bank accounts is that they come with simple, easy to use dashboards that have various other key integrations that are needed by these businesses.
The features offered by SME neobanks could include:
- current account
- cards – virtual / physical
- expense management : employee benefits & reimbursements
- collect payments, automatic reconciliation
- make payouts
- accounting, bookkeeping
- invoice management
- GST, tax filing
- credit: line-of-credit, revenue-based financing, credit cards
- developer platform: APIs/SDKs for those keen to integrate for their services
While at the core banking services are provided, we see various values added use cases like lending taking off for SMEs. Like what neobanking has done to traditional banking, we now see neolending doing the same to traditional lending models. These services are provided through innovative models like pre-approved line-of-credit, revenue-based financing, digital credit cards, Buy Now Pay Later (BNPL) and much more.
Neo-insurance has also taken off for consumers and now we will see adoption and distribution through embedded models with startups and SMEs.
One of the common factor across neo-fication of banking, investing, lending and insurance is that majority of the times, the business owns the customer experience and has a partner financial organisation from a compliance / regulatory stand point.
Neo-wealth / investing will be the next big thing for startups and SMEs. And we are building the pipes to enable businesses to seamlessly provide wealth-as-a-service by embedding inside of their customer journeys and experiences.
Neo-fication of banking, lending, investing, and insurance for startups, SMEs and their customers will grow in India in the coming years.
Paysack Fintech Platform for Startups and SMEs:
The Paysack Fintech Platform brings digital financial services across 4 core areas for startups and Small and Medium Enterprises (SMEs):
Banking: wallets, cards, payments, accounting and expense management.
Wealth Management: demat account, trading account, funding the account, portfolio management and reports, robo-advisory and more.
Lending: line-of-credit, loan origination and management systems to borrow from banks or other financial institutions.
Insurance: sachet / micro loan products, management, bundled products, claims and settlements.
If the startup / SME is planning to launch a Fintech solution like a neobank or payments solution, we have the full onboarding flow including KYC.
If the startup / SME wants to provide their employees with a benefits and reimbursement solution, they could consider the Paysack Employee Benefits Wallet + Card.
If the startup / SME wants to provide their developers with an easy to integrate wallets, cards, payments APIs, they could use the Paysack Card Platform or opt for the no-code option if you do not have a strong technology team available to invest time and effort for launch the product quickly.
Additionally for card administration & management, they could choose between APIs, dashboards, terminals and/or Google Spreadsheets.
If the startup / SME wants to provide their developers with an easy to integrate demat / trading accounts, funding account, robo-advisory, portfolio and reports, they could use the Paysack Investment Platform.
If the startup / SME is looking for ways to converting their physical shares into demat shares, that can be done. part from this being an easier way to manage share issue, this will be recommended especially for those looking to raise funds for investors in future.
If you are a startup or SME looking for an embedded finance solution across banking, investing, lending or insurance, do reach out to us at care@paysack.com