Paisalo Digital Limited, a prominent NBFC focused on inclusive lending, has announced its appointment as a Business Correspondent (BC) partner for Indian Overseas Bank (IOB). This partnership marks a significant expansion of Paisalo’s Banking‑as‑a‑Service (BaaS) platform, which already includes partnerships with State Bank of India (SBI) and Bank of India (BOI).
By adding Indian Overseas Bank to its BC partner network, Paisalo strengthens its role as a key player in delivering last‑mile banking and financial services. The company leverages its extensive on‑ground network and technology-driven operating model to provide banking services to underserved and underbanked communities across rural and semi‑urban India.
Paisalo’s BC network facilitates the delivery of essential banking services such as account opening, deposits and withdrawals, remittances, and social security schemes. It also acts as a trusted local interface for customers entering the formal financial ecosystem.
The strategic rationale behind this 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 of Paisalo Digital Limited, stated: “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.”
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).
This article is written by Kinjal and reviewed by Aman Shukla before publication.