Fincare

About Fincare

Fincare Small Finance Bank (SFB) was a Bengaluru-based banking institution that began its journey as Disha Microfin Private Limited in 2009, founded by Sameer Nanavati, Keyur Doshi, Vivek Kothari, and Soham Shukla. The entity's roots trace back to two microfinance institutions (MFIs): Disha Microfin, operating in Gujarat, and Future Financial Services Private Limited (FFSPL), which started in South India in 2007. After receiving an in-principle approval from the Reserve Bank of India (RBI) in 2015, Disha Microfin transformed into Fincare Small Finance Bank, commencing its banking operations on July 21, 2017, with Rajeev Yadav as MD & CEO. The bank's primary mission was to promote financial inclusion by serving rural and semi-urban customers, particularly low-income families and micro-enterprises.

The bank operated on a business model that blended digital efficiency with a high-touch, doorstep service approach, a crucial element for its target clientele who required convenience and minimal paperwork. Revenue was primarily generated through interest on a diverse loan portfolio and fees from various banking services. Initially focused on microfinance, Fincare SFB expanded its asset products to include loans against property, loans against gold, affordable housing loans, and two-wheeler loans. On the liabilities side, it offered a comprehensive suite of products such as savings and current accounts, fixed and recurring deposits, and NRI deposits, often providing competitive interest rates to attract retail depositors. The bank leveraged technology for instant, paperless account opening and credit decisioning, using Aadhaar-based e-KYC and biometric authentication to streamline processes.

A significant milestone in Fincare's history was its merger with AU Small Finance Bank, which became effective on April 1, 2024. This all-stock amalgamation was a strategic move to create a larger, pan-India retail banking franchise with a diversified portfolio and a complementary geographic footprint, as Fincare had a strong presence in Southern India. The merger aimed to combine Fincare's expertise in rural and inclusion-focused lending with AU SFB's digital product suite, including credit cards and video banking services. Post-merger, all of Fincare's employees became part of the AU SFB family, and Rajeev Yadav was appointed as the Deputy CEO of AU SFB, continuing to lead the key business units that originated from Fincare.