Amit Nigam on How BANKIT Is Bridging India’s Financial Divide with Agent Networks and Technology
In this insightful interaction with Amit Nigam, Executive Director of BANKIT, he discusses the company’s mission to bridge India’s financial divide and its innovative approach to supporting unbanked communities. Nigam explains how BANKIT utilises an agent network to offer services like AePS, micro ATMs, and bill payments while handling challenges such as geographic isolation and digital illiteracy. He sheds light on the role of Big Data Analytics in refining operations and ensuring compliance with data privacy regulations. Nigam also shares BANKIT's future plans to expand its reach and enhance financial inclusion across underserved areas.
StartupTalky: What does BANKIT do and how does it serve the unbanked population in India?
Mr. Nigam: BANKIT has emerged as a pioneering FinTech startup with a mission to bridge the fintech divide in India. Recognizing the significant gap in financial access for rural and marginalized populations, the company has developed a strategic approach to democratize digital financial services. By understanding the unique challenges faced by unbanked communities, BANKIT has built an ecosystem that goes beyond traditional banking models.
Our innovative solution focuses on eliminating barriers of digital illiteracy, geographical isolation, and limited infrastructure. Through a carefully crafted network of local agents and technology-enabled services, BANKIT brings the most convenient financial tools directly to the doorstep of underserved populations. The company's commitment extends beyond mere service provision; it aims to empower individuals by providing them with the knowledge, tools, and opportunities to participate in India's rapidly evolving digital economy.
As of October 2024, BANKIT has expanded its reach to 13,567 pin codes and serves 729 districts nationwide, demonstrating its commitment to bridging the financial divide in India. Over the past year (in Y24), the company on-boarded 27,753 new agents, significantly expanding its network to 173,867 agents across the country.
StartupTalky: What specific financial services does BANKIT provide to promote financial inclusion?
Mr. Nigam: Our comprehensive financial service portfolio is designed to address the multifaceted needs of underserved communities. BANKIT’s service range includes critical fintech functionalities that traditionally required physical bank branch visits in the pre-digital era. Domestic money transfer capabilities allow individuals to send funds seamlessly across India, while the Aadhaar Enabled Payment System provides convenient cash withdrawal, balance inquiry, and mini-statement services linked to Aadhaar accounts.
The Micro ATM service transforms local shops into accessible financial touchpoints that enable cash withdrawals through debit cards. Utility bill payments through the Bharat Bill Payment System currently known as Bharat Connects and prepaid mobile recharges offer additional convenience. Beyond these core services, BANKIT also extends support for specialized transactions and services like prepaid cards, travel bookings, Insurance, and other demanding services. Each service is strategically crafted to simplify complex financial processes and make them accessible to individuals with limited digital literacy.
The effectiveness of these services is evident in our recent usage statistics. In October 2024 alone, 10,96,948 customers utilized the Aadhaar Enabled Payment System (AePS), 31,501 benefited from Mini ATM services, and 1,07,199 customers conveniently paid their bills through the Bharat Bill Payment System (BBPS).
Kavita Thakur
StartupTalky: Can you explain Bankit's business model and how it drives growth in the fintech space?
Mr. Nigam: BANKIT’s groundbreaking "Agent Model" represents a paradigm shift in financial service delivery, ingeniously combining entrepreneurship with financial inclusion. By transforming local shop owners and aspiring entrepreneurs into authorized financial service agents, the company creates a decentralized network that penetrates even the most remote geographical regions. These agents become critical intermediaries, providing digital banking and payment services within their immediate communities. This model not only expands BANKIT's operational reach but simultaneously addresses unemployment by creating meaningful earning opportunities. The rapid customer acquisition—adding 10.5 lakh+ customers monthly and maintaining a robust base of 2.8 million customers—demonstrates the model's effectiveness.
By aligning business growth with social impact, BANKIT has positioned itself as a dynamic player in the fintech ecosystem, successfully converting potential market limitations into strategic advantages. The company's financial performance underscores the success of this model. In the fiscal year 2023-24 (FY23-24), BANKIT achieved an impressive revenue of approximately 169 crores. Top-performing areas for agent onboarding include Ahmedabad, Gopalganj, West Champaran, Dakshin Dinajpur, and Ludhiana, highlighting the model's effectiveness across diverse regions.
StartupTalky: What revenue growth is BANKIT expecting for FY2025, and what factors will contribute to achieving this goal?
Mr. Nigam: Our growth strategy reveals a nuanced, data-driven approach to market expansion. The company is systematically evaluating market conditions in digitally underserved areas, and conducting comprehensive surveys to understand emerging customer needs. BANKIT’s growth methodology involves developing targeted solutions that directly address the financial service gaps in rural and semi-urban landscapes.
By continuously adapting our service offerings based on granular market insights, we are positioning ourselves for sustainable expansion. The company's commitment to understanding and responding to local market dynamics, combined with its aggressive customer acquisition strategy and innovative agent network, suggests a robust growth trajectory with the company having already achieved a revenue of approximately 169 crores in FY23-24. The rapid expansion to 1,73,867 agents covering 13,567 pin codes and 729 districts provides a robust foundation for potential future growth.
Ultimately, factors like technological innovation, strategic market penetration, and a deep understanding of underserved market segments will be crucial in driving our financial performance in the upcoming year.
StartupTalky: How does BANKIT overcome the challenge of geographic isolation when extending services to rural areas?
Mr. Nigam: Our strategy for overcoming geographic isolation is multifaceted and ingeniously implemented across the national expanse. By establishing an extensive agent network spanning every Indian state, the company effectively transforms local environments into accessible financial service points. BANKIT’s micro ATM services and mobile-based solutions eliminate the need for customers to travel long distances to access banking facilities.
Each agent becomes a localized financial hub, equipped to handle transactions that would traditionally require branch visits. The company's technological infrastructure supports this decentralized model, enabling real-time transactions and comprehensive service delivery.
By empowering local entrepreneurs and integrating advanced digital technologies, BANKIT creates a dynamic ecosystem that brings sophisticated financial services directly to communities' doorsteps. This approach not only addresses geographical constraints but also builds trust and familiarity with digital financial tools.
StartupTalky: What key tools and technologies does BANKIT rely on to manage its business operations?
Mr. Nigam: Big Data Analytics has emerged as BANKIT's cornerstone technological strategy, providing deep insights into customer behavior, market trends, and emerging service requirements. By meticulously examining vast datasets, the company can uncover hidden patterns, anticipate customer expectations, and strategically align its service offerings.
Beyond analytics, BANKIT emphasizes comprehensive training programs and user-friendly tutorials to ensure effective technology adoption across its agent network and customer base. The company's technological approach is holistic, focusing not just on data interpretation but also on knowledge dissemination. Regular in-house training sessions ensure that employees and agents remain updated on the latest service innovations.
This commitment to continuous learning and technological adaptation enables BANKIT to maintain operational efficiency and stay ahead of evolving market dynamics.
StartupTalky: How is BANKIT ensuring compliance with recent data privacy regulations?
Mr. Nigam: BANKIT demonstrates a robust commitment to responsible service delivery. Our approach to regulatory compliance is embedded in our comprehensive training and transparent communication strategies. By providing detailed tutorials for every product and ensuring information accessibility across multiple channels, the company establishes a framework of trust and accountability.
The emphasis on user education and clear communication suggests an inherent understanding of data sensitivity. BANKIT's proactive approach to customer information—providing clear, accessible guidance about its services—indicates a foundational respect for user data. Our focus on empowering users through knowledge implies a broader commitment to ethical technological implementation.
StartupTalky: How do you see current fintech industry trends affecting companies like BANKIT?
Mr. Nigam: BANKIT perceives the FinTech landscape as a dynamic and rapidly evolving ecosystem with immense growth potential. The company views Big Data Analytics not merely as a technological trend but as the fundamental future of business intelligence. By enabling businesses to understand customer needs with unprecedented granularity, these technologies are transforming traditional service delivery models.
BANKIT positions itself as an adaptable, forward-thinking organization ready to leverage emerging technological developments. Our strategy involves continuous market evaluation, customer need assessment, and agile solution development. The company recognizes that success in the FinTech space requires more than technological prowess—it demands a deep understanding of customer expectations, a commitment to innovation, and the ability to translate complex technological capabilities into user-friendly, accessible services.
StartupTalky: What are BANKIT 's future plans for service enhancement and scaling operations?
Mr. Nigam: Our future roadmap is characterized by strategic, methodical expansion and a relentless focus on financial inclusion. The company plans to penetrate currently underserved geographical areas by conducting comprehensive market surveys and developing tailored solutions. Our approach involves continuous evaluation of rural and semi-urban market needs, ensuring that service offerings remain relevant and impactful. BANKIT is a pioneer in the industry, providing affordable insurance services starting at just Rs. 1 for its customers.
By empowering more local entrepreneurs through our agent network, we aim to create a scalable, decentralized financial service ecosystem. The aggressive customer acquisition strategy will continue with a nuanced understanding that growth isn't merely clocking numbers but actualizing meaningful economic empowerment.
Going forward, technology will continue to remain a critical enabler, with ongoing investments set to surge across vectors like training, tutorial development, and innovative service design. BANKIT's overarching vision extends beyond business growth—it's about creating sustainable economic opportunities for marginalized communities.
Anagha S
