CASA, CMS will become dominant revenue products in future: Fino

Micro ATMs are also another important business, Fino Payments Bank Chief Sales Officer Shailesh Pandey said.CASA CMS accounted for 20.5 per cent of its revenue in the Q4 period ending March 2022.He said the company will launch new products through more third-party tie-ups like fixed deposits and international remittances in near future.

Fino Payments Bank on Tuesday said the rising interest rate regime will not derail its current growth momentum and going forward, current and savings account (CASA) and cash management services (CMS) will be the dominant revenue streams for the new generation digital focused bank.

The payment bank will introduce a host of new products and services to offer an entire gamut of banking products to drive the customer base.

''Going forward, Fino is focusing on customer acquisition, CASA and CMS are high margin products and these two will become the dominant revenue streams for us going forward. Micro ATMs are also another important business,'' Fino Payments Bank Chief Sales Officer Shailesh Pandey said.

CASA & CMS accounted for 20.5 per cent of its revenue in the Q4 period ending March 2022.

He said the company will launch new products through more third-party tie-ups like fixed deposits and international remittances in near future. Payment banks cannot retain deposits over Rs 2 lakhs and lend directly. But, it will offer such solutions through third-party tie-ups.

Banking correspondence vertical, which was the most significant chunk of its revenue, is shrinking and now stood reduced to about 20 per cent as of the Q4 period ending March 2022.

Pandey said the payment bank had registered Rs 1,009 crore revenue in FY22 growing at 28 per cent over the previous year and hopes to maintain the growth momentum in the current fiscal. Asked about the recent hardening of interest rates, Pandey said he didn't foresee any hurdle on this front as of now on its growth momentum.

Fino, which started with 25,000 banking access points in 2017, grew the network by 40 times in five years. By the end of FY22, Fino Bank created a branchless network of over one million points with a presence across 90 per cent of the districts in the country.

Pandey, stating Fino was focusing in the eastern region including the North-Eastern states, said it expects the number of merchant onboarding to rise significantly in the current fiscal.