Mumbai-based Fino Payments Bank said it has hit operational profitability and reduced its net loss by 50% for the last financial year. As per numbers shared by the bank, it reported a net revenue of Rs 689 crore, up 86 percent from Rs 370 crore in FY 2019.
This makes Fino the one of the first payments bank to achieve profitability at scale while leveraging the core business of driving financial inclusion and digital payments beyond metropolitan India.
“Our strategic focus on having a lean variable cost model riding on digital platforms, increasing transactions and high margin products enabled us to grow by over 86% in FY19-20. With revenue of Rs 689 crores, we closed FY 19-20 with positive EBITDA and posted profit in the fourth quarter,” said Rishi Gupta, chief executive officer, Fino Payments Bank.
The bank said that it has facilitated transactions worth Rs 1 lakh crore in FY20, doubling from the previous year. In terms of the number of transactions, the bank processed 380 million last year against 195 million in FY19. The bank has increased its savings and current accounts base by 65 percent last year with around 50% of the customers being tech savvy ones.
While COVID-19 has had a massive impact on the digital payments and financial services industry, Fino is confident of getting back to its pre-COVID-19 business volumes within the next few months.
Currently, Fino operates 2 lakh banking points directly and another 2 lakh through partners with 80 percent of them being in the rural areas. It has set an aim to reach 10 lakh points in the next two to three years.