Get All Access for $5/mo

IIFL Finance And Open Launched a Neo-bank For MSMEs The name of the JV company would be IIFL-Open Fintech

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

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.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business News

Apple Is Adding ChatGPT to iPhones This Week. Here's How It Works.

ChatGPT will take over questions that Siri can't answer.

News and Trends

India's Logistics Cost to be Reduced to 9% Within 2 Years: Nitin Gadkari

With a focus on innovation, clean energy, infrastructure, and rural empowerment, Nitin Gadkari's vision aligns with India's aspirations to become a global economic powerhouse.

Leadership

As a Leader, Take These 5 Steps to Bridge the Gap Between Innovation and Execution

Companies that want to turn ideas into action must align their people and listen to their customers.

Growing a Business

How to Spot Trends and Anticipate Market Shifts Before Your Competition

Discover how to identify disruptive trends before your competitors by mastering the art of anticipating market shifts. Learn strategies for staying ahead and gaining a competitive edge in business.

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.