While savings are core to banking, few traditional banks encourage micro-savings. According to a report by EY; adding low-value and goal-based savings products can instil a savings habit which will prove beneficial for payment banks. The study also found that the average amount of money spent on saving is lower than in other countries.
While savings are core to banking, few traditional banks encourage micro-savings. According to a report by EY; adding low-value and goal-based savings products can instil a savings habit which will prove beneficial for payment banks. Aside from micro-savings, the report highlights five probable models as alternative revenue streams for payments banks, including providing an alternative mode of credit assessment and the cross-selling of financial services to their user base.