Paisalo Adds Indian Overseas Bank to BC Partner Network

Paisalo Digital Limited, a leading digitally enabled NBFC focused on inclusive lending, today announced that it has been appointed as a Business Correspondent (BC) partner for Indian Overseas Bank (IOB). This marks a significant expansion of Paisalo's Banking-as-a-Service (BaaS) platform, complementing its existing BC partnerships with State Bank of India (SBI) and Bank of India (BOI).

With this addition, Paisalo further strengthens its position as a key last-mile banking and financial services enabler, leveraging its extensive on-ground network and technology-driven operating model to deliver banking services to underserved and underbanked communities across rural and semi-urban India.

Paisalo's BC network enables the delivery of essential banking services including account opening, deposits and withdrawals, remittances and social security schemes, while also acting as a trusted local interface for customers entering the formal financial ecosystem.

Strategic Rationale

The BC partnership with Indian Overseas Bank supports Paisalo's long-term strategy in several ways:

- Multi-bank BC platform: Enhances Paisalo's position as a bank-agnostic BaaS partner with diversified public-sector banking relationships

- Capital-light scalability: Enables network expansion and customer engagement without incremental balance-sheet risk

- Customer lifecycle monetisation: Strengthens early-stage customer relationships, creating a structured funnel for future cross-sell and credit demand

This development aligns with Paisalo's broader strategy of building a high-tech, high-touch distribution architecture that integrates physical presence with digital capabilities. The BC network complements Paisalo's branch and distribution point infrastructure, enabling efficient customer acquisition, service delivery and relationship deepening at scale.

Commenting on the development, Santanu Agarwal, Deputy Managing Director, Paisalo Digital Limited, said: "Our appointment as Business Correspondent for Indian Overseas Bank represents a strategic progression of our multi-bank Banking-as-a-Service platform. We view the BC business as a long-duration franchise, anchored in customer lifecycle engagement rather than transactional distribution. The addition of Indian Overseas Bank strengthens the durability of this franchise and enhances our ability to participate meaningfully in customers' evolving financial needs.

Being onboarded by another bank is also a validation of the maturity of our compliance, operating and governance frameworks. As we scale our distribution footprint, such partnerships allow us to deepen engagement and build long-term monetisation while preserving a capital-efficient growth model. With SBI, Bank of India and now Indian Overseas Bank, our BC platform continues to evolve into a resilient, multi-bank ecosystem delivering sustained value to all stakeholders."

Source : Equity Bulls

Keywords

PaisaloDigital BusinessCorrespondent BCPartner IndianOverseasBank IOB