India, Feb. 21 -- Fino Payments Bank might appear as just another minor payments bank, yet underneath, it has been developing something significantly larger. With robust deposit growth, enhancing margins, and recent in-principle approval to transition into a Small Finance Bank, the narrative is evolving. The crucial question is - can this bank, driven by merchants, transform its inexpensive deposits into a strong lending mechanism

Fino's path began in 2006 as FINO PayTech, nurtured by ICICI Bank. Back then, it wasn't even a bank, rather it served as a business correspondent, assisting banks in connecting with rural and semi-urban clients. It managed KYC, biometric verification, smart cards, welfare disbursements, and cash deposit and wit...