Only 10 of Indians are now aware of fintech products BankSathi Founder

In an interaction with Urvi Shrivastav Editor-in-Chief BW CFO, BW Businessworld; BankSathi, Founder, Jitendra Dhaka, talks about financial inclusion, need for financial literacy and the role BankSathi plays in achieving these goals.

What made you decide to launch BankSathi?

During my time as an engineering student, 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 huge information gaps regarding financial planning and investment strategies. While we think of investments that result in interest income, people in rural India were happy with simple savings accounts as they were not aware of the other options. Due to people’s lack of knowledge, there has not been significant industry penetration so far. Because I wanted to raise awareness of various financial products, I got a job as a digital marketer in the fintech industry. This experience gave me the opportunity to enter the financial profession, something I have been passionate about for as long as I can remember. And the first thing I recognize is that I need to contact these people about a number of financial products, so that I can bridge the gap between us and at the same time make 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 confirmation from some people who have already achieved something in their life and became an example for me. They didn’t help me think about starting my own business, but they influenced me to create 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 must be able to rely on their own experience or their 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 great emphasis on referrals from friends, family or colleagues. By having its advisors sell and discuss fintech products, BankSathi seeks to change the way Indian fintech companies do business. Currently, it has advisors from 17,000 different Indian pin codes. In terms of users, we are primarily looking for knowledgeable advisors such as 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 the “why”, “how”, “which” or the financial product they need to get hold of. To achieve the goal of having one counselor for every 100 families, over 700,000 people have been trained as counselors as of now. In addition, BankSathi wants to help 10 million people start 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.

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

According to statistics published by the agency, more than 77% of financial products are sold either through family members or through reference models. However, these people are not properly trained to perform this job. The role Banksathi advisers play in the marketing and distribution of various financial products is crucial in this context. Our advisors undergo specialized training to effectively show 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 strive to market their products through our financial advisors.

Over the past two years, you have grown rapidly and are now almost present in 17,000 pin codes. Can you talk about some of the things you’ve learned and experienced while expanding?

Before launching our business, we observed that the rural areas of India, home to over 64% of the population, are not even aware of the financial products typically available in metros and tier 1 and 2 cities. With a background in farming and knowledge of how the right type of financial investment can change the course of a person’s life, it was only natural that the investment was aimed at the rural population. In 2020, our lives were changed forever. People have understood the need for sound savings and investment across different portfolios. And what better opportunity than now to educate individuals about the wide range of financial products and solutions available that can significantly reduce their financial burden? What I have learned the most is that companies, especially those targeting rural areas, need to organize campaigns to raise awareness and gain respect from the community. People always prefer to open their books while discussing investments, especially if they know the person or have some other form of reference. Language and trust are the two big obstacles. We have managed to win their trust and to expand, we are currently expanding into 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 experience investments, just like people in the north and south?

I have seen very big changes in technology, internet penetration and awareness of financial services in the last 10 years. The startup ecosystem grew at a huge level in the last 10 years, there were very few investors available at that time. Now we can see that there are many angel investors, micro vcs, VCs, PE and many investors are available to support 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 must have, especially in rural areas?

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

How do the advisors working 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 upon successful conversion. Since each product works differently, advisors receive a different payout each time. Furthermore, the lead generation process is easy 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. Additionally, since payouts are released weekly, advisors have nothing to worry about and can enjoy their money as soon as they earn it. Not only this, we allow advisors to earn extra income through our referral program. Advisors must invite other prospects from their network and they can earn an additional 10% commission on their earnings for life. This is a great source of income without any investment