There are tons of startups in financial instrument rate comparison space, but the space is far from being termed ‘overcrowded’ – mostly because the smaller players are active in few regions only and of course, banks need to have multiple channels/lead generators to sell their financial instruments.
BankBazaar, Chennai based startup offers platform to compare rates between different financial institutions and to apply for the loan online.
The company is betting big on transparency that they offer (well, most of the loans have lot of ‘hidden’ numbers) – they even expose secondary fees in the final calculations.
Essentially, you can get customized loan quotes from multiple banks within few minutes – the interface is neatly done and BankBazaar does take care of certain points (for instance, most of the banks have a list of preferred companies, the same is uploaded on the site as well; one can slide through different amount/tenure combinations).
Bankbazaar is positioned as a high volume, pay-at-close channel for banks to target incremental consumers (while others follow low value-add online referral models).
Financial product sale has witnessed major surge coming via Internet – Online sales accounts for 18% of total financial products sales in India and Online Tax Filing in India grew 504%! – clear indicator of the fact that India netizens are embracing Internet for buying financial instruments online.
Do give BankBazaar a spin and share your comment.