Archive · 18 Sep 2025
Fintechs Partner with Banks Amid Rising Credit Card NPAs
Banks are teaming up with tech companies (fintechs) to create and manage credit cards.
These fintechs help banks find new customers by partnering with popular brands like e-commerce sites.
This is happening because more people are having trouble paying back their credit card debt.
Fintechs make it easier for banks to find new customers and manage the cards, reducing costs.
This helps banks grow and also helps brands offer their customers rewards programs.
The new co-branded cards are expected to become very popular in the next few years.
Fintech startups are helping banks co-brand and manage credit cards with consumer brands.
Banks are outsourcing credit card origination to platforms like Hyperface and Falcon.
Co-branded cards target specific industries such as e-commerce and travel.
Co-branded credit cards are projected to grow significantly, outpacing traditional cards.
Banks are looking to lower acquisition costs and mitigate the risks associated with rising NPAs.
- Who
- Banks and fintech companies like Hyperface and Falcon.
- What
- Banks are partnering with fintechs to co-brand and manage credit cards.
- When
- The trend is current and accelerated due to rising NPAs and flatlining credit card issuances.
- Where
- India.
- Why
- Banks seek to expand their customer base, leverage fintech expertise, and mitigate rising non-performing assets.
- Key Players
- Hyperface, Card91, Falcon, VegaPay
- Banks Involved
- YES Bank, ICICI Bank, AU Small Finance Bank, Federal Bank, IndusInd Bank
- Co-branded Card Growth Forecast
- 35-40% CAGR (FY24-FY28)
- Projected Market Share (FY28)
- Over 25%
- Customer Acquisition Cost (CAC) - Traditional
- ₹2,000-₹3,000 per card
- CAC - Fintech Platforms (Potential)
- Below ₹1,000 per customer
- Credit Card NPAs (Dec 2024)
- ₹6,742 crore