Aditya Birla Capital Launches ABCD Fintech App Amid NBFC-Fintech Convergence Trend

15 Apr 2024 , 03:03 PM

NBFCs and fintech firms have historically collaborated through co-lending arrangements, with NBFCs providing capital and fintech firms managing the loan process digitally.

A new trend is emerging as fintech startups seek NBFC licenses for credibility, scale, and regulatory advantages, prompting NBFCs to enhance their in-house technology capabilities for direct customer sourcing.

Aditya Birla Capital Ltd., a prominent NBFC, is set to launch its direct-to-customer fintech app called “ABCD,” offering various financial products on a single digital platform.

The app, housed under the subsidiary Aditya Birla Capital Digital (ABCD), is currently undergoing trials and is expected to be launched on April 16.

ABCD will integrate all financial offerings of the Aditya Birla Group along with additional features such as credit cards, payments stack, financial goal analyzers, AI-powered chatbots, tax planners, and health tracking.

Targeting middle-class and tech-savvy individuals, ABCD aims to leverage its extensive network and assets under management to cater to customer needs.

Aditya Birla Capital has invested equity capital of ₹850 Crore in Aditya Birla Finance to support growth initiatives and launched the “Payments Lounge” app with Phicommercem last year.

Key features of the ABCD app include a payments stack with UPI and bill payments, with plans to introduce additional offerings such as UPI international, Rupay credit cards on UPI, and NCMC.

The app has obtained licenses from NPCI and applied for a Prepaid Payment Instruments (PPI) license, aiming to provide merchant acquisitions and wallet services in FY25.

ABCD app offers a unique functionality allowing users to make a single payment by debiting multiple bank accounts to address fund shortages.

Future enhancements include the integration of National Common Mobility Card (NCMC) and forex services, along with the deployment of predictive and prescriptive analytical models.

Aditya Birla is exploring partnerships with fintech firms through its startup engagement platform “Infinite” to solve business challenges and adopt emerging technologies.

Regulatory measures from the Reserve Bank of India have prompted NBFCs to reassess their reliance on co-lending arrangements and prioritize strengthening direct sourcing channels for lending.

Aditya Birla Finance and Piramal Enterprise are among the NBFCs focusing on strengthening their direct channels for loan sourcing while reducing reliance on partnerships.

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