Fino Payments Bank Ltd. · NSE:FINOPB
Fino Payments Bank — Q4 FY2023 Earnings Presentation
54 slides from Fino Payments Bank's earnings presentation, May 2, 2023
Slide 1: Exchange filing cover letter - Investor Presentation
May 02, 2023 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5th Floor, 2nd Floor, New Trading Wing, Plot No. C/1, G Block, Rotunda Building, P.J. Towers, Bandra - Kurla Complex, Dalal Street, Mumbai- 400 001 Bandra (E), Mumbai - 400 051 (Scrip
Slide 2: Q4 & FY'23 Investor Presentation
Classification: Restricted Har Din Fino… FINO PAYMENTS BANK Q4 & FY’23 Investor Presentation Classification: Restricted
Slide 3: Table of Contents
Classification: Restricted Table of Contents 1 Strategic Update & Key Performance Highlights 2 Q4’23/ FY’23 Financial Performance 3 Product Performance Trends 4 Fino’s Business Model 5 Understanding Fino’s Products Classification: Restricted
Slide 4: Strategic Update & Key Performance Highlights
Classification: Restricted Strategic Update & Key Performance Highlights FINO Matlab #Fiकर noट Classification: Restricted 3
Slide 5: Journey So Far
Classification: Restricted Journey So Far Launches various Direct Receives Payments Set-Up as a Payments Benefit Transfer Services Bank License Technology Company (DBT) 2006 2007 2008 2014 2015 Financial inclusion Launches Domestic becomes the core of Money Transfer the business Services Crossed rev
Slide 6: Business Strategy – Current & Future
Classification: Restricted Business Strategy – Current & Future Phase I: Phase II: Phase III: Transaction Acquisition Monetization Build Distribution Network: 2.5 L+ New CASA accounts Significant trust equity build: Merchant base to 13.7 L added every month in Q4’23 Strong opportunity for cros
Slide 7: Performance at a Glance
Classification: Restricted Performance at a Glance Q4’23 FY’23 ₹ 323.4 Cr Total Revenue ₹ 1,229.9 Cr 13% 22% ₹ 68k Cr ₹ 255k Cr 27% Total Throughput 36% ₹ 25.5 Cr ₹ 73.1 Cr 141% Renewal Income 167% ₹ 22.1 Cr PAT ₹ 65.1 Cr 25% 52% ₹ 36.6 Cr Cash Profit ₹ 118.1 Cr 21% 38% All growth figures are YOY gr
Slide 8: Revenue and EBITDA Growth
Classification: Restricted Revenue and EBITDA Growth Revenue (₹ Crs) 1,230 21% CAGR 18% CAGR 323 285 1,009 232 791 198 691 FY'20 FY'21 FY'22 FY'23 Q4'20 Q4'21 Q4'22 Q4'23 EBITDA (₹ Crs) 62% CAGR 136.1 230% CAGR 43.0 84.4 29.4 52.0 14.4 1.2 (0.2%) 6.6% 8.4% 11.1% 0.6% 6.2% 10.3% 13.3% (1.4) FY'20 FY'
Slide 9: PAT And Cost-Income Improvement
Classification: Restricted PAT And Cost-Income Improvement PAT (₹ Crs) 78% CAGR 65.1 164% CAGR 22.1 42.7 17.6 20.5 (4.6%) 2.6% 4.2% 5.3% 7.6 (32.0) 1.2 0.6% 3.3% 6.2% 6.8% FY'20 FY'21 FY'22 FY'23 Q4'20 Q4'21 Q4'22 Q4'23 Cost to Income (%) 37% (11%) 35% (9%) 31% 28% 28% 26% 26% 25% FY'20 FY'21 FY'22
Slide 10: CASA Journey on Track
Classification: Restricted CASA Journey on Track No. of CASA Accounts Accounts Opened per Day Total Deposits (₹ Crs) (in Lakhs) 74% CAGR 75.2 71% CAGR 8,131 74% CAGR 1,200 5,545 45.9 724 3,096 25.7 453 14.3 1,617 226 FY'20 FY'21 FY'22 FY'23 FY'20 FY'21 FY'22 FY'23 FY'20 FY'21 FY'22 FY'23 In FY'23, n
Slide 11: Customer Stickiness
Classification: Restricted Customer Stickiness Renewal Income (₹ Crs) CASA Average Balance (₹) 210% CAGR 14% CAGR 1,216 73.1 1,093 946 27.5 825 7.6 - FY'20 FY'21 FY'22 FY'23 FY'20 FY'21 FY'22 FY'23 Debit Card Spends (₹ Crs) Debit Card Spends Per Transaction (₹) 66% CAGR 7,023 6% CAGR 2,984 3,954 2,7
Slide 12: CMS – High Margin Product
Classification: Restricted CMS – High Margin Product CMS Clients Throughput in ₹ Crs Avg Revenue per Txn in ₹ 186 46,144 121% CAGR 31% CAGR 125.3 131 94.0 72.6 23,885 85 11,828 39 4,301 FY'20 FY'21 FY'22 FY'23 FY'20 FY'21 FY'22 FY'23 FY'20 FY'21 FY'22 FY'23 Diversified cliental to e-Commerce, retail
Slide 13: CMS: Transition through Sector Diversification
Classification: Restricted CMS: Transition through Sector Diversification Accelerated growth path helped by aggressive partner on-boarding from various sectors 19% 6% 4% 17% 7% 1% 2% 4% 6% 97% FY’21 2% FY’22 FY’23 84% 51% Total Throughput ₹11,828 cr ₹23,885 cr ₹46,144 cr NBFC & MFI E-com (Logistic)
Slide 14: Digital Journey
Classification: Restricted Digital Journey 40K Digital Accounts* 8.1 Cr UPI were opened in FY’23 transactions in Mar’23 – Contributing 1% of Issuing Bank 5.7 lakh monthly Ecosystem average users on FinoPay, 360% growth over FY’22 23.9 lakh unique UPI users monthly in 75K Bill Pay and Mar’23 Recharge
Slide 15: Digital – Building Momentum (1/3)
Classification: Restricted Digital – Building Momentum (1/3) Digital Throughput as a Total Throughput (₹ Crs) Digital Throughput (₹ Crs) % of Total Throughput 39% CAGR 2,55,011 192% CAGR 48,965 +17% 19% 1,87,311 1,32,931 10% 18,393 94,453 3% 4,327 2% 1,966 FY'20 FY'21 FY'22 FY'23 FY'20 FY'21 FY'22 F
Slide 16: Digital – Building Momentum (2/3)
Classification: Restricted Digital – Building Momentum (2/3) Count of transactions* Unique users* Active monthly users on FinoPay (in Crs) (in Lakhs) (in Lakhs) 28.35 8.13 5.72 6.95 20.65 17.64 5.56 14.62 3.58 4.05 2.87 2.92 2.03 1.24 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q1'23
Slide 17: Digital – UPI a Catalyst (3/3)
Classification: Restricted Digital – UPI a Catalyst (3/3) Renewal Rate for “Shubh Savings Accounts” our Flagship Product* Non- UPI Customers UPI Customers Renewal Rate Avg. Balance Renewal Rate Avg. Balance 68% ₹1,509 80%+ ₹1,821 Note: Above is based on the data analysis for 12 month data for Shubh
Slide 18: FY'24 Strategic Priorities
Classification: Restricted FY’24 Strategic Priorities Enhancing Customer Customer Enabling New Merchant Acquisition Stickiness Partnerships Network Increasing physical and Enhancing customer New merchant onboarding Increase digital footprint; digital presence; activeness and continuous and geographi
Slide 19: Setting base for FINO 2.0 +
Classification: Restricted Base Set for a Strong Growth Trajectory Revenue Growth Our Ambition Units FY’23 FY’26 Target CAGR of 20%+ Average CASA Balance ₹ 1,216 ~2,000 Setting base for FINO 2.0 + Customers million 7.5 ~20.0 EBITDA Margin – 15%+ Total Deposits ₹ 1,200 ~3,500 Merchant Base million 1.
Slide 20: Q4'23 / FY'23 Financial Performance
Classification: Restricted Q4’23 / FY’23 Financial Performance परं परा, प्रतिष्ठा और अनुशासन | ये है FINO Point के िीन स्तंभ || Classification: Restricted 19
Slide 21: Profit & Loss – Highest Profitable Quarter Q4'23
Classification: Restricted Profit & Loss – Highest Profitable Quarter Q4’23 Particulars QoQ YoY YoY Q4’23 Q3’23 Q4’22 FY’23 FY’22 (₹ Crs) (%) (%) (%) Revenue 323.4 314.1 285.3 3.0% 13.4% 1,229.9 1,008.9 21.9% Product Cost 217.7 213.3 195.8 2.1% 11.2% 841.9 680.9 23.6% Net Revenue 105.8 100.8 89.5 4.
Slide 22: Q4'23 Key Business Highlights
Classification: Restricted Q4’23 Key Business Highlights Revenue EBITDA PAT RoE ₹ 323.4 Crs ₹ 43.0 Crs ₹ 22.1 Crs 16.7%* 13.4% YoY 46.3% YoY 25.4% YoY +190 bps (YoY) Txn. On Fino Total Number of Accounts Platform Throughput Merchants Opened 34.9 Crs ₹ 67.7k Crs 13.7 Lakhs 8.3 Lakhs 63.2% YoY 27.2% Y
Slide 23: FY'23 Key Business Highlights
Classification: Restricted FY’23 Key Business Highlights Revenue EBITDA PAT RoE ₹ 1,229.9 Crs ₹ 136.1 Crs ₹ 65.1 Crs 12.8%* 21.9% YoY 61.3% YoY 52.3% YoY -84 bps YoY Txn. On Fino Total Number of Accounts Platform Throughput Merchants Opened 120.7 Crs ₹ 2.55L Crs 13.7 Lakhs 29.7 Lakhs 79.2% YoY 36.1%
Slide 24: Transaction And Subscription & others
Classification: Restricted Revenue Mix Across Parameters QoQ 35% Open Banking Own Banking 65% Own and Open Banking 38% 36% 35% 33% Channel Q1’23 Q2’23 Q3’23 Q4’23 62% 64% 65% 67% Subscription & others Transaction And 30% 31% 34% 25% Q1’23 Q2’23 Q3’23 Q4’23 75% 70% 69% 66% Transaction Income 27%Subsc
Slide 25: Product Revenue Mix: Q4'23 & FY'23
Classification: Restricted Product Revenue Mix : Q4’23 & FY’23 ( in ₹ Crores) Q4’22 v/s Q4’23 FY’22 v/s FY’23 1,230 323 10%, 123 285 12%, 38 1,009 10%, 119 7%, 19 9%, 29 5%, 53 12%, 35 15%, 154 32%, 103 34%, 422 36%, 103 35%, 355 9%, 29 10%, 127 10%, 28 9%, 28 10%, 101 10%, 118 14%, 41 9%, 30 17%, 1
Slide 26: Product Portfolio
Classification: Restricted Product Portfolio Q4’23 Revenue FY’23 Revenue Q4’23 FY’23 Product (₹ Crs); Margins Drivers (₹ Crs); Margins YoY Growth YoY Growth High growth high margin; 67 59% 217 58% CASA customer ownership; path to 64% 87% annuity 30 40% High growth high margin 104 40% CMS 64% busines
Slide 27: Overall PAT & ROE
Classification: Restricted Overall PAT & ROE Profit After Tax PAT for Q4’23 at 22.1 19.1 17.6 ₹ 22.1 Cr 4.5 6.5 7.6 7.9 14.1 10.1 13.8 3.1 25% growth over Q4’22 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Return on Equity 20.7% 20.0% 18.7% 17.7% 16.7% Annualized ROE of Q4’23 14
Slide 28: Product Performance Trends
Classification: Restricted Product Performance Trends FINO platform pe #आइए_िो_सही Classification: Restricted 27
Slide 29: AEPS
Classification: Restricted AEPS Revenue (₹ Crs) Take Rate 127.2 101.5 29.1 28.1 0.31 0.30 FY'22 FY'23 Q4'22 Q4'23 Q4'22 Q4'23 Throughput (₹ Crs) Average Ticket Size (₹) 41,167 2,754 8,916 9,609 32,000 2,650 FY'22 FY'23 Q4'22 Q4'23 Q4'22 Q4'23 The AEPS industry grew by 0.3% YoY in Q4’23 AEPS maintain
Slide 30: Micro-ATM
Classification: Restricted Micro-ATM Revenue (₹ Crs) Take Rate 170.7 0.35 0.35 118.5 41.3 28.1 FY22 FY23 Q4'22 Q4'23 Q4'22 Q4'23 Throughput (₹ Crs) Average Ticket Size (₹) 24,299 3,746 3,745 17,664 5,305 3,850 FY22 FY23 Q4'22 Q4'23 Q4'22 Q4'23 Continue to be the dominant player in the Conversion fro
Slide 31: Remittance
Classification: Restricted Remittance Revenue (₹ Crs) Take Rate 422.0 0.86 0.86 355.1 103.4 103.3 FY'22 FY'23 Q4'22 Q4'23 Q4'22 Q4'23 Throughput (₹ Crs) Average Ticket Size (₹) 48,827 2,629 2,674 41,063 11,966 12,023 FY'22 FY'23 Q4'22 Q4'23 Q4'22 Q4'23 One of the pioneers in the remittance industry,
Slide 32: Expanding Reach
Classification: Restricted Expanding Reach Total Merchants Merchant Count Heat-map (in lakhs) 13.7 10.2 6.4 2.8 FY'20 FY'21 FY'22 FY'23 #HarDinFino… Classification: Restricted 31
Slide 33: Fino's Business Model
Classification: Restricted Fino’s Business Model Banking On The Go! Classification: Restricted 32
Slide 34: Business Model of Fino Payments Bank
Business Model of Fino Payments Bank Classification: Restricted Moving Customers up the Fintech Value Chain Level 4 o Significant trust equity built Engagement o Digital native customers have better renewal prospects and a strong future potential for upsell and cross sell Online Payments o Commencem
Slide 35: Strong Progress Over Last 6 Years
Strong Progress Over Last 6 Years Classification: Restricted Momentum Continues Products Launched Combined Merchant Network (In Lakhs) LITE Portal for BC Merchant, e-Mandate Services, 2023 Cash out module in CMS, FD services with partner FY'23 13.7 2022 Aadhar-Pay, Go Digit shopkeeper’s policy, Phys
Slide 36: Annexure: Understanding Fino's Product
Classification: Restricted Annexure Understanding Fino’s Product #FikarNot Classification: Restricted 35
Slide 37: CASA - Physical (1/2)
Classification: Restricted CASA - Physical (1/2) Defining the problem statement, customer segment, potential and market size opportunity A bank branch in tier 3 and below city is generally very crowded and is far away. It is also open during limited banking hours on weekdays. Use Case: Through Fino
Slide 38: CASA - Physical (1/2)
Classification: Restricted CASA - Physical (1/2) Defining the problem statement, customer segment, potential and market size opportunity A bank branch in tier 3 and below city is generally very crowded and is far away. It is also open during limited banking hours on weekdays. Use Case: Through Fino
Slide 39: CASA - Physical (2/2)
Classification: Restricted CASA - Physical (2/2) Understanding the process flow of an account opening Fino Merchant Portal 2 Revenue source Subscription Fee charged to Merchant Customer 1 1 Customer approaches a merchant for account opening 3 Merchant seeks various customer details and enters in the
Slide 40: CASA - Digital Account Opening 1/3
Classification: Restricted CASA - Digital Account Opening 1/3 Open FinoPay App & choose Insert Mobile number and Insert Aadhar & PAN Insert OTP Digital A/c Opening Email ID numbers #HarDinFino… Classification: Restricted 39
Slide 41: CASA - Digital Account Opening 2/3
Classification: Restricted CASA - Digital Account Opening 2/3 Insert OTP for Aadhar Insert Basic & General Check Aadhar and PAN Check General Information Authentication Customer Information Information Provided Provided #HarDinFino… Classification: Restricted 40
Slide 42: CASA - Digital Account Opening 3/3
Classification: Restricted CASA - Digital Account Opening 3/3 Select the Debit Card as Congratulations! Your Deposit the amount in Congratulations! your per requirement & Verify Fino Account is opened your account account has been funded #HarDinFino… Classification: Restricted 41
Slide 43: Digital Marketing Push
Classification: Restricted Digital Marketing Push #HarDinFino… Classification: Restricted 42
Slide 44: Cash Management Services (1/2)
Classification: Restricted Cash Management Services (1/2) Defining the problem statement, customer segment, potential and Fino’s business value Companies which collect cash from their customers need to deposit the same at a bank branch for money in the account. They Use Case: do the same at a neares
Slide 45: Cash Management Services (2/2)
Classification: Restricted Cash Management Services (2/2) Understanding the process flow of a transaction 3 Merchant Account 2 with Fino Bank Revenue source Fee Income from B2B Customer’s bank account customers Merchant 1 Delivery agent/ collection agent/ customer visits merchant point with cash 1 t
Slide 46: Micro-ATM (1/2)
Classification: Restricted Micro-ATM (1/2) Defining the problem statement, customer segment, potential and market size opportunity Beyond the metro and tier 1 cities, ATM penetration is low. Customers have to travel a distance to withdraw cash. The genesis Use Case: of micro-ATM is to facilitate con
Slide 47: Micro-ATM (2/2)
Classification: Restricted Micro-ATM (2/2) Understanding the process flow of an MATM transaction 3 Merchant Account 2 with Fino Bank Customer’s bank 4 account Merchant 1 1 Customer shares his debit card to the merchant 5 Merchant inserts the card in his/ her micro-ATM handheld device – device 2 Cust
Slide 48: AEPS (1/2)
Classification: Restricted AEPS (1/2) Defining the problem statement, customer segment, potential and market size opportunity Customers often don’t carry their ATM cards with them. Many at the bottom of the pyramid may not even have an ATM card. Use Case: Most ATM kiosks will not be suitable for suc
Slide 49: AEPS (2/2)
Classification: Restricted AEPS (2/2) Understanding the process flow of an AEPS transaction 3 Merchant Account 2 with Fino Bank Customer’s bank 4 account Merchant 1 1 Customer gives his fingerprint on bio-authentication device of the merchant 5 2 The device is connected to network and also to the me
Slide 50: Remittance (1/2)
Classification: Restricted Remittance (1/2) Defining the problem statement, customer segment, potential and market size opportunity Customers having cash with them can visit a merchant point to transfer the same to a bank account on the beneficiary side. Use Case: Remittance is essentially a cash di
Slide 51: Remittance (2/2)
Classification: Restricted Remittance (2/2) Understanding the process flow of an Remittance transaction 3 Merchant Credit in Account with beneficiary 2 Fino Bank bank account Merchant 1 Customer pays cash to the merchant for transfer to beneficiary account – separate charges for transaction is also
Slide 52: Open Banking Platform (1/2)
Classification: Restricted Open Banking Platform (1/2) Defining the problem statement, customer segment, potential and market size opportunity Fintech players offering various payment products require a bank at the back-end to process a transaction. Being a bank, Fino Use Case: can offer its technol
Slide 53: Open Banking Platform (2/2)
Classification: Restricted Open Banking Platform (2/2) Understanding the process flow of a transaction 1 2 3 Customer of Merchant of Fino’s Open Banking Open Banking Open Banking Technology partner partner partner Platform 1 Customers visit the merchant points of the Open Banking partner (API partne
Slide 54: Thank You
Classification: Restricted Thank You Classification: Restricted 53