Indian SMEs to receive banking support from U.K. fintech firm Tide
Published 31 March 2021
Tide, the U.K.’s leading business banking fintech, has partnered with RBL Bank to provide business accounts and related banking services with highly connected admin tools for the SME segment in India.
Under the first overseas launch of Tide platform, Tide members – small and medium-sized enterprises – can use the platform to open current and savings accounts at India-based RBL Bank as well as make seamless transactions. Launched in 2017, Tide’s platform appeals to customers with its bank account infrastructure and a comprehensive set of highly connected admin tools for businesses, such as full integration with accounting systems. More than 320,000 SMEs are members of Tide, representing over five per cent market share in the U.K.
“With this partnership, we are ready to begin initial testing of Tide India, before entering into similar partnerships with other leading fintech providers to build our platform during the course of 2021,” said Oliver Prill, CEO of Tide.
Tide plans to acquire 25,000 members in India in the next financial year and scale up to two million customers in the next five years. The focus is on serving the unregistered and unorganised sector, helping bring these SMEs into the mainstream.
According to Statista, among 1.26 million registered companies in India, about a half are micro, small and medium enterprises. More than 63 million MSMEs account for an almost 31 percent contribution to the country’s GDP.
Representatives from both sides believe that RBL Bank’s geographical presence across 28 Indian states and Union Territories will allow Tide to quickly scale up its business in India. The NSE- and BSE-listed Bank currently services over 9.08 million customers through a network of 403 branches, 1,344 business correspondent branches and 412 ATMs. Last year, the Bank has carried out a massive digitalisation of its dated hardware-based infrastructure into software-defined solutions, ensuring the delivery of a quality banking experience for its customers, according to CXOToday.
In the long run, Tide’s ambition is to be a leading player in markets accounting for 25 per cent of global SMEs. Over the past six years, Tide has raised over £100 million in investment from a bunch of global venture firms.