Namaste Credit becomes neobank

via FinTech Futures 

Indian online lending marketplace Namaste Credit announced it is becoming a “fully-fledged digital-only bank” for micro small and medium businesses (MSMEs).

The neobank will have a “foundational software-as-a-service (SaaS) play” and aims to offer the first one-stop-shop for MSMEs. It will include automated credit, banking and accounting solutions.

Soon-to-be-launched app ‘Namaste Biz’ will centralise MSME’s cash flow and banking and credit management.

“Our transition to a neobank will not only help the start-up get a firmer grip into the banking and non-banking financial company (NBFC) ecosystem but also balance revenues with customer acquisition costs to maintain a profitable growth path,” says Namaste Credit’s co-founder and director, Lucas Bianchi.

He adds: “We believe a technology-based integrated platform that can bring together banks, NBFCs and other stakeholders can completely transform the financial services industry, specially from a B2B perspective.”

The company is confident the conversion will give them a “substantial competitive advantage”. Fellow co-founder and director Gaurav Anand says the newly-turned neobank will “accelerate customer and channel acquisition”, “reduce operational costs significantly” and allow them “to expand quickly to global markets”.