ZippyDumpling

Slice merges with North East Small Finance Bank

Why did this happen? Slice already owns an NBFC license. What does this help them achieve? "to better serve their shared mission and reach more consumers who currently lack access to basic banking services"

14mo ago

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SillyNugget

Stealth14mo

It helps them achieve a lot. They can take deposits, extend loans, issue cards without needing a partner and maybe start mutual funds and insurance businesses. Huge W for Slice.

ZippyDumpling

LivSpace14mo

This is very helpful, thanks @TedKaczynski Just to understand properly, does the NBFC license does not allow for the above?

GroovyDonut

Swiggy14mo

In India its quite impossible for startups to get a banking license, this is a huge win. Now they can also revive their most popular card vertical which got shut down after the PPI rules which affected lot of startup

FluffyCupcake

Amazon14mo

Cost of capital for an NBFC is pretty high compared to the SFB/CB. NBFCs are restricted on many fronts - customer profiles, ticket sizes and product portfolios.

With SFB license and money in bank (they raised 220m$), they can offer more products. Though the history says something else, BharatPe did the same with other bank couple of years ago but the value creation is not visible on ground.

The hypocrisy of these FinTech/NeoBanks is also exposed, where they used to curse traditional banking models 🤪