What's Airtel's weapon in its new fintech war against Jio? Your SIM card

Daybreak

The newest battle ground between Bharti Airtel and Reliance Jim is financial services. Airtel already has two thriving ventures. The first is the seven-year-old Airtel Payments Bank which happens to be one of the three profitable payments banks in India. And the second is new financial entity called Airtel Finance which is mainly aimed at Reliance Jio’s fintech disruptor, Jio Financial Services.

The one year old Airtel Finance has already serviced loans worth $300 million. It seems do be doing pretty well. In fact, just last month, in an earnings call, the Airtel boss, Gopal Vittal talked about how Airtel Finance was shaping up really well. He said It served 400,000 car and loan products in FY24.

The story is similar with Airtel Payments Bank. It registered its highest-ever annual revenue of more than $250 million in FY24 and also grew its deposits by 50% from the year-ago levels. The bank has been adding nearly a million new customers every month.

But all of this comes at a time when India’s other fintechs are struggling with profitability.

Apart from the fact that Jio is still leading, there is one more thing that sets the two of them apart from each other. Jio Financial Services’ focus is to lend to B2B players and engage in asset-management services.

Airtel, meanwhile, is taking a different path. The company is using the oldest tool it has—SIM cards—to partner with lenders for consumer-centric products like loans and credit cards.

But why SIM cards? The answer lies in the Airtels nearly thirty year old distribution network.

Tune in.