BankBazaar.com - developing a strategy for a sustained growth

Abstract

BankBazaar.com is an online loan processing company. This was started off in 2008 by a group of 4 people, trying to solve a real life problem which they personally had faced. Getting loan is a very complicated process and it tries to simplify the entire experience. For the same bankbazaar.com has tied up with many banks like HDFC ltd, HDFC Bank, citi financials, Axis Bank, Deutsche Bank etc. At present, to reach the target segment the company has resorted to above the line and below the line advertising, tying up with more and more banks. They also are selling their product as “white label” to other banks. By white label, we mean they are managing the bank’s online loan processing system completely. The market potential seems to be huge. They are managing at present a very small portion of the actual they can reach. The company is based on a DSA model and not on a lead based model, on which most of its competitors are based on. This gives them a direct advantage over the competitors because they are adding value to the banks and not to the DSAs like other sites such as apnaloan.com, deal4loans.com etc. Therefore, they are favored by banks even. They charge a very nominal 0.4% of the entire loan amount, for each loan successfully processed, whereas, the DSAs charge anything from 0.8% to 1.2% or entire processing fee. The DSA also at time pass on wrong information to the customers and thus create a bad name for the bank. These things are eliminated with BankBazaar.com coming into picture.