Airtel Payments Bank, an online payments banking arm of Bharti Airtel, has a great future in the country. The business is all set to break even by the end of this financial year. The Airtel Payments Bank got a boost on the arrival of COVID-19, which pushed users to transact more online. With the banking arm of the company all set to bring in profits, Airtel is confident about its future in India. The Airtel Payments Bank not only makes the transactions more convenient but also provides users state-of-the-art safety on making online transactions.
Investments in digital infrastructure and deep distribution working for Airtel payments bank
According to an ET Telecom report, an executive of the company said that investing in the digital infrastructure and targeting a deep distribution model of business has helped Airtel Payments Bank scale faster. In the previous financial year, which ended on March 31, 2021, the baking arm of Bharti Airtel saw a 60% YoY growth in deposits coming into the savings account. Further, the active revenue earning customers (RECs) grew by more than 77% YoY to reach 55 million.
In terms of revenues, Airtel Payments Bank witnessed a jump of 32% YoY to Rs 627 crore. The banking arm of the telco has helped it in reducing the customer churn rate as well. The monthly churn rate for Bharti Airtel dropped to 2.2% in the last quarter of FY21 as compared to 2.6% in the same period of FY20.
Another reason why Airtel Payments Bank saw great engagement was the introduction of Airtel Safe Pay. It allows users to leverage the network and infrastructure of the telco to safely make transactions.
One of the key reasons why Airtel Safe Pay has been appreciated by the market and the telco’s customers is the apparent need for such security technology. Cyber frauds have been increasing at a rapid pace, and a security system to tackle them and make transactions safe was required desperately.
Even Gopal Vittal, CEO of Bharti Airtel, wrote to the 321 million subscribers of the company, alerting them about the rising cyber frauds and asking them to leverage Airtel Safe Pay for making online transactions. TelecomTalk