NCLT approves the merger of Slice with North East Small Finance Bank
The National Company Law Tribunal (NCLT) has sanctioned one of the major mergers in Indian fintech space, the amalgamation of Slice, a fintech firm, with North East Small Finance Bank (NESFB). This deal is one of the much-required strategic partnerships on the anvil that could improve financial literacy and built the outreach of financial solutions in India’s north-eastern region.
Slice is a fast-growing credit platform known for its credit products specific to Millennials; thus, it comes with a strong digital presence and a customer base. The merger with NESFB, which already has a well-established presence across the rural and semi urban regions will, the management believes, lead to a symbiotic relationship between fintech efficiency and traditional banking solutions. It will also be of a benefit towards the innovation of new financial products that will fit the requirements of those in the emerging markets especially in the un-served regions.
The approval by NCLT enhances the significance of regulatory support while integrating financial organisations such that mergers of these kinds are in line with the vision of financial stability and access. After the merger, the new merged entity is expected to use Slice’s online presence to expand NESFB’s product menu, with a focus on increasing borrowers’ credit access and other financial services.
It also envisages the generation of more competition in the financial services industry especially between the small finance banks and Fintech companies which will result in the development of other complex innovations that are customer sensitive. The eventual amalgamation of Slice and NESFB can bring some best practices of a successful cooperation of fintech and traditional banking organization in India.
