IIFL Finance And Open Launched a Neo-bank For MSMEs
The name of the JV company would be IIFL-Open Fintech
IIFL Finance Ltd, a non-banking financial company, and Open Financial Technologies Pvt. Ltd, a SME-focused neo-banking platform, announced a joint venture to launch a neo-bank that would cater to banking and credit requirements of micro and small enterprises (MSMEs). The name of the joint venture company would be IIFL-Open Fintech Pvt. Ltd with an initial capital of INR 120 crore. Through this JV, IIFL and Open aim to target the financial needs of MSMEs.
"The joint venture will enable the customers to open an account in less than two minutes without visiting any physical branch and access all banking features on the app itself. The best part for the customer is that accounting and reconciliation will be auto-matched," said Nirmal Jain, managing director, IIFL Finance.
IIFL Finance has over 8 million customers and presented in 3000 locations. Over 95 per cent of IIFL Finance's loan book caters to micro enterprise, as per the statement. With this JV, Finance would be able to offer neo-banking service to all its customers.
"We are excited to join hands with IIFL in launching a neo-banking offering called MyMoney for the micro businesses and consumers combining the strengths of Open in the neo-banking space and IIFL on the lending side with access to its 8 million customers," said Anish Achuthan, co-founder and CEO, Open.
The unique proposition of this neo-bank is an innovative User Interface system made exclusively for small business merchants. It will offer an alternative experience to traditional banking integrated with accounting, finance, payroll and so on in a seamless way.