After Axis, Kotak Mahindra Bank might partner with Apple Pay
What's the story
Kotak Mahindra Bank is considering a partnership with Apple Pay in the near future, if customer demand for the service remains strong. The announcement was made by Ashok Vaswani, the bank's Chief Executive Officer. The potential collaboration would mark an expansion of the bank's digital offerings, and make it only the second Indian bank after Axis Bank to partner with Apple Pay.
Strategic approach
Axis is only lender to have partnered with Apple Pay
Vaswani said the bank will evaluate customer demand before deciding on its participation in the Apple Pay ecosystem.
He added, "We will eventually get there (to be a part of the ecosystem). If our customers demand it, we will do it, and we will get it done over the next couple of quarters."
Currently, only Axis Bank has partnered with Apple Pay for its credit cards issued on Visa and Mastercard networks.
Business strategy
Kotak Mahindra Bank focuses on expanding credit card business
Kotak Mahindra Bank, India's fourth-largest private lender, is also focusing on expanding its credit card business.
The bank plans to leverage its existing customer base, data, and customer service instead of chasing market share at the cost of profitability.
Vaswani said, "We do see good traction on spends, but at the same time, you know our relative market share on cards is still very small."
Financial strategy
Deploying FCNR(B) deposits into higher-yielding customer assets
Kotak Mahindra Bank plans to deploy foreign currency non-resident bank (FCNR(B)) deposits into higher-yielding customer assets in the coming quarters.
The bank also intends to cut its reliance on term deposits and Inter-Bank Participation Certificates (IBPCs).
The move comes after the lender mobilized ₹55,344 crore through RBI's special window swap and lent ₹16,110 crore through its international branches.