It is my privilege to present to you the Annual Report of Fino Payments
Bank for FY25. As we reflect on this year, we do so not merely as a Bank delivering
financial services, but as a catalyst shaping the future of India's digital and
inclusive economy.
The past year has underscored India's remarkable resilience. Amid
global uncertainties, rising geopolitical tensions, and evolving regulatory frameworks,
our nation continued its trajectory as the fastest-growing major economy. With GDP growth
outpacing global peers, the India story remains one of optimism, driven by a young
demographic, increasing financial formalisation, and the accelerated adoption of digital
technologies.
Within this context, the payments ecosystem in India has emerged as a
global benchmark. UPI's exponential growth, the formalisation of financial
transactions, and rising digital engagement across rural and semi-urban India are
transforming the way Bharat transacts. However, this progress also warrants a
responsibility to ensure that growth is inclusive, that technology bridges rather than
widens divides and that transactions are secure and safe from frauds.
Fino's journey is intricately woven into this larger narrative. We
are not just participants in the payments landscape; we are enablers of digital inclusion
for millions. Our unique model, combining a robust merchant network, last-mile physical
presence, and technology-driven platforms, allows us to serve customers often overlooked
by traditional financial institutions. Our mission transcends transactions; it is about
creating access, fostering trust, and delivering value across India's remote corners.
The Board remained steadfast in its commitment to governance, risk
management, and long-term value creation. We worked closely with the management team to
ensure that Fino's strategy remained aligned with the evolving regulatory environment
and the needs of customers. The foundation we have built - anchored in compliance,
customer trust, and operational excellence-positions us well for growth.
Looking ahead, we believe that the opportunity for Fino is immense. As
India's digital payments ecosystem deepens, and as the government continues to drive
financial inclusion and digital literacy, Fino is uniquely positioned to scale its impact.
The emerging opportunities and challenges allow us to innovate on the product and delivery
side with the right set of partners that further strengthen our business model.
Payments banks played, and continue to play a critical role in changing
the rural banking landscape with Fino being at the forefront. It is a proud moment to have
witnessed Fino's performance over the years that could well serve as an industry
benchmark. A pioneer in digital financial inclusion, Fino recorded five successive years
of profitability, a remarkable achievement given the constraints on payments banks.
Our approach paved the way for the creation of an asset-light business
model. The strategic investments in cutting-edge technology over the years are aimed at
strengthening the core banking system, digital infrastructure and cyber security.
Fino's emphasis on digital in the last couple of years has yielded exceptional
results. From a modest start, digital now contributes substantially to our throughput and
revenue, emerging as a key growth driver. New business avenues around the UPI stack are on
the anvil, which we believe will reinforce Fino's role in taking UPI and digital to
the masses.
With opportunities ts our come challenges. Digitalisation, for all its
ease and convenience, exposed the banking industry and payments ecosystem to new forms of
threats - mule accounts, money laundering and digital arrests. We are confident that Fino
will address challenges by complying with, as well as strengthening, know your customer
(KYC) norms to safeguard customer interests and its business. Continuous investments in
technology are critical to migitate fraud risks, explore growth opportunities, improve
efficiencies and enhance the customer experience, while adhering to regulatory guidelines.
The Board remained steadfast in its commitment to governance, risk
management, and long-term value creation. We worked closely with the management team to
ensure that Fino's strategy remained aligned with the evolving regulatory environment
and the needs of customers. The foundation we have built - anchored in compliance,
customer trust, and operational excellence-positions us well for growth. Looking ahead, we
believe that the opportunity for Fino is immense. As India's digital payments
ecosystem deepens, and as the government continues to drive financial inclusion and
digital literacy, Fino is uniquely and technology positioned to scale its impact.
The emerging opportunities and challenges allow us to innovate on the product and delivery
side with the right set of partners that further strengthen our business model.
After close to eight years as the leading payments bank, Fino is
gearing up for the next phase. Our application for a small finance bank license is under
consideration by the regulator. The learnings from our referral loan business will keep us
in good stead as new avenues emerge in the long run. Our aspiration to become a
differentiated smallfinancebank ambition to broaden our offerings while maintaining the
agility and customer-centricity that define us.
On behalf of the Board, I extend my deepest gratitude to our
shareholders, customers, partners, regulators, and employees. Your trust and support
inspire us to continue building a resilient, responsible, and future-ready institution
that empowers every Indian to participate in the digital economy. Warm regards,
| Rajat Kumar Jain |
| Part-time Chairperson & Independent |
| Director |