Unity Small Finance Bank , in collaboration with fintech giant BharatPe, has introduced a groundbreaking credit card that promises to revolutionize the way customers manage their purchases. This new offering, launched on the RuPay network, stands out as India's first EMI-based credit card, developed in partnership with the National Payments Corporation of India (NPCI).

Key Features of the New Credit Card

The card comes packed with an array of features designed to cater to the diverse needs of Indian consumers:

• Flexible Payment Options: Cardholders can choose to pay in full or convert their purchases into equated monthly installments (EMIs).
• Extended EMI Facility: Purchases can be converted into EMIs for up to 12 months, offering greater financial flexibility.
• Rewards on EMI Transactions: Users can earn rewards on their EMI transactions, redeemable through the BharatPe app.
• Cost-Effective: The card comes with no joining or annual fees, making it an attractive option for budget-conscious consumers.
• Premium Benefits: Complimentary lounge access and health check-ups are included, adding value beyond just financial transactions.
• UPI Integration: The credit card can be linked to UPI, enabling payments across a wide network of merchants nationwide.

Digital-First Approach

Unity Bank and BharatPe have embraced a fully digital approach for this credit card:

• Applications are processed entirely through the BharatPe app.
• The digital process covers onboarding, KYC verification, and credit eligibility checks.
• This streamlined approach aims to provide a seamless experience for applicants.

Target Audience

The credit card is designed to cater to a broad spectrum of customers:

• Salaried individuals looking for flexible payment options.
• Self-employed professionals seeking credit solutions tailored to their needs.

Industry Implications

This launch marks a significant milestone in India's financial services sector:

• It represents the first EMI-based credit card on the RuPay network.
• The collaboration between a small finance bank (Unity Bank) and a fintech company (BharatPe) showcases the potential for innovative partnerships in the financial ecosystem.
• The integration with UPI further demonstrates the ongoing efforts to create a more interconnected and versatile payment system in India.

As the financial landscape in India continues to evolve, this new credit card offering from Unity Bank and BharatPe could potentially set a new standard for credit products, combining the convenience of digital processes with flexible payment options tailored to the Indian market.

Shivalik Small Finance Bank has secured a significant investment from SMBC Asia Rising Fund, a venture co-founded by Japan's Sumitomo Mitsui Banking Corporation. The fund has acquired a 4.99% stake in the bank for $7 million, valuing the institution at approximately ₹1,200.00 crore.

Investment Details

The investment from SMBC Asia Rising Fund is part of a larger equity raise totaling ₹100.00 crore. Existing investors, including Accel, Quona, Lightspeed, and Sorin Investments, have contributed an additional ₹40.00 crore to this funding round.

About Shivalik Small Finance Bank

Shivalik Small Finance Bank, which transformed from a cooperative bank to a small finance bank in 2021, has been making significant strides in the Indian banking sector. The bank currently serves over 900,000 customers across 79 branches in 11 states.

Financial Performance

Shivalik has reported impressive financial figures:

Planned Utilization of Funds

The newly acquired funds will be strategically used to:

1. Strengthen technology infrastructure
2. Expand workforce in key areas:
   • Product development
   • Engineering
   • Operations

Impact on Capital Adequacy

The capital infusion is expected to have a significant impact on the bank's financial health:

This improved capital position will support Shivalik's ambitious growth targets of 35-40% in business expansion.

Strategic Implications

This investment marks a notable development in the small finance banking sector in India. The involvement of SMBC Asia Rising Fund, backed by a major Japanese banking corporation, signals growing international interest in India's evolving financial landscape.

For Shivalik Small Finance Bank, this investment not only provides necessary capital for growth but also brings in strategic partnerships that could prove valuable for its future expansion and technological advancement.

As the bank continues to focus on secured lending and expands its customer base, the additional capital and expertise from both international and domestic investors could potentially accelerate its growth trajectory in the competitive small finance banking sector.