"Only 10% of Indians are now aware of fintech products": BankSathi, Founder

In an interaction with Urvi Shrivastav Editorial Lead BW CFO, BW Businessworld; BankSathi, Founder, Jitendra Dhaka, speaks about financial inclusion, need for financial literacy and the role BankSathi plays in accomplishing these goals.

What made you decide to launch BankSathi?

During my time as a student of engineering, I spent a lot of time in rural regions of India working on various projects. It was during these trips that I first became aware of the vast information gaps regarding financial planning and investment strategies. While we think about investments that result in interest income, people in rural India were pleased with simple savings accounts since they were unaware of the other options. Because of people's lack of knowledge, there hasn't been significant industry penetration thus far. Because I wanted to increase awareness about various financial products, I got a job as a digital marketer in the fintech business. This experience provided me with the opportunity to enter the financial profession, something I have been passionate about for as long as I can remember. And the first thing that I recognise is that I need to contact these folks about a range of financial products so that I can bridge the gap between us while also making them aware of a number of different types of investments.

When you were growing up, were there any outside influences that made you want to start your own business?

I have had big ambitions since childhood and got validation from some people who already achieved something in their life and became an example for me. They didn't help me to think about starting my own business but they influenced me to make something big. My university LPU founders Mr. Ashok Mittal and Mrs Rashmi Mittal are the biggest influencers for me.

When it comes to making financial decisions, people in rural India need to be able to rely on their own experience or neighbors. How different is it now through BankSathi ‘s financial advisors? 

According to a study, only 10% of Indians are now aware of fintech products. As part of their fintech strategy, businesses in India have traditionally placed a strong emphasis on referrals from friends, family, or colleagues. By having its advisers sell and discuss fintech products, BankSathi is seeking to change the way Indian fintech companies conduct business. Currently, it has advisers from 17,000 different Indian pin codes. When it comes to users, we are primarily looking for knowledgeable advisers like insurance agents, financial analysts, retired bankers, housewives, small business owners, and anyone looking to supplement their current income.

The goal is to guarantee that everyone has access to financial products because many people still carry cash and are unaware of "why," "how," "which," or the financial product they need to obtain. In order to achieve the aim of having one adviser for every 100 families, 700,000+ people have been trained as advisors as of right now. Additionally, BankSathi wants to assist 10 million people in starting small businesses. 80% of their business comes from clients and advisors in tier 2 and tier 3 cities. 90% of India's pin codes already have them.

How did BankSathi crack the code and built a successful network of financial advisors for rural India?

According to statistics published by the bureau, more than 77% of financial products are sold either through family members or through reference models. These people don't, however, acquire the proper training to perform this job. The part Banksathi advisors play in the marketing and distribution of different financial products is crucial in this context. Our advisers undergo specialised training to effectively pitch to our customers and provide them with accurate information. Currently, banks and other financial institutions make up more than 80% of our clientele, and most of them are striving to market their products through our financial advisors.

In the past two years, you've grown rapidly and are now almost present in 17,000 pincodes. Can you talk about some of the things you've learned and experienced while expanding?

Before we launched our business, we observed that the rural areas of India, which are home to over 64% of the population, aren't even aware of the financial products that are typically available in metro and tier 1 and 2 cities. With a background in farming and knowledge of how the right kind of financial investment can change the course of a person's life, it was only natural that the venture would target the rural population. In 2020 , our lives were changed forever. People have come to understand the need for prudent saving and investing across various portfolios. And what better opportunity than now to educate individuals on the wide range of financial products and solutions that are available and may significantly reduce their financial burden? What I've learnt most is that companies, especially those that target rural areas, must organise campaigns to raise awareness and gain the respect of the community. People always prefer to open their books while discussing investments, especially if they know the individual or have some other kind of reference. Language and trust are the two major obstacles. We have managed to win their trust and, in order to expand, we are currently extending to new regions and developing content in local languages.

Can you tell us about an interesting trend you've seen in your area? How do they feel about investment, just like people in the north and south?

I've seen very big changes in technology, internet penetration and financial services awareness in the last 10 years. Startup ecosystem grew at a great level in the last 10 years, there were very few investors available that time. Now we can see there are a lot of angel investors, micro vcs, VCs, PE and a lot of Investors are available to back you in building something good. Even on the financial side people are getting awareness about financial products, services. Digital payment has grown very aggressively.

What skills do you think a successful financial advisor needs to have, especially in rural areas?

First and foremost, we value a person's zest for challenges in an advisor. Aside from the product knowledge, which we teach them anyhow, everything is covered by the human touch, understanding the customer's needs and making recommendations in line with them. We must keep in mind that rural India has different dynamics or environments than metropolises and Tier 2 and Tier 3 cities. People only trust those that they either know personally or who have come highly recommended, especially when investing in products. The dynamics have changed over the past two years, and more and more individuals are becoming interested in saving money and making investments.

How do the advisors who work on Banksathi platforms earn?

Various Banks and Financial institutions are associated with us. When the advisors recommend products or services through BankSathi to their customers they earn a good commission on successful conversion. Since every product works differently, the advisors get a different payout every time. Furthermore, the lead generation process is straightforward and it takes only 5 minutes, and the advisors can earn a minimum of Rs. 50,000 or more every month by just referring products. Moreover, since the payouts are released weekly, advisors have nothing to worry about and can enjoy their money as soon as they earn it. Not just this, we allow advisors to earn extra income through our referral program. Advisors need to invite other potential people from their network and they can earn an extra 10% commission of their earnings for a lifetime. This is a great source of income without any investment