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Slice set to enter banking via merger with SFB
October 05, 2023
Credit and payments unicorn Slice on Wednesday announced its merger with Guwahati-based North East Small Finance Bank (NESFB), in a rare instance of a fintech entering the banking sector.
Bengaluru-based Slice, which also holds an NBFC licence, said it has received a no-objection certificate from the Reserve Bank of India (RBI) for the transaction. The merger will allow the combined entity “to better serve their shared mission and reach more consumers who currently lack access to basic banking services,” Slice said in a statement.
In 2021, the RBI had allowed fintech firm BharatPe to buy 49% in Unity Small Finance Bank, as part of a rescue plan for Punjab and Maharashtra Cooperative (PMC) Bank.
Following the merger, Slice will cease to exist as a company. “All Slice entities, including its NBFC licence, will be merged with the combined banking entity,” a person aware of the development told Mint.
“Slice, being a fintech company, went through a rigorous amount of due-diligence and all kinds of audits over the last 15 months before announcing this merger,” the person added. “Slice has been also working closely with the NESFB management to understand banking operations better, to understand where technology can play a big role, what kind redundancies and merger will take place, in order to take better control of how the management will run, post the transaction.”
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