Home Markets How Fintechs are Leveraging Digital Sales Channels to Drive Business Growth

How Fintechs are Leveraging Digital Sales Channels to Drive Business Growth

by Prabhakar Tiwari (CGO, Angel One Ltd.)
Jul 19, 2023
How Fintechs are Leveraging Digital Sales Channels to Drive Business Growth, Market, KonexioNetwork.com

We now live in a world where we are “always on”, where a business can reach us effortlessly on our messaging apps, social media platforms or email. It is no wonder then that businesses are striving to expand their digital channel repertoire to meet the customer on their preferred platform.

Omnichannel is no longer a buzzword; it is a reality and businesses across industries have realised that providing a seamless and unified customer interaction across digital channels and devices is the way to go. The fintech space is no outsider to this digital revolution; in fact, fintech or financial technologies owes its emergence to the digital revolution. No wonder then that fintechs seek to leverage digital sales channels for growth.

Digital sales refers to the manner in which companies make use of digital channels to sell their services. In the case of fintech companies or fintech-powered brands, this could refer to how for instance a customer may make use of the firm’s app to avail of a trading platform’s offerings. Digital insurance apps, trading apps, banking apps all let customers avail of facilities and opt for new services.

Power of Whatsapp

Another example would be how Whatsapp or another messaging app may be used to sign up and buy a company’s products or services. Account opening (be it banking or demat in the case of trading platforms), availing of loans or investment services can all be done on any of the digital channels offered by the fintech-powered firm.

In fact, with the growing use of Whatsapp across the globe at over two billion users, fintechs cannot afford to ignore the power of the messaging app to reach out to their customer base. According to a 2021 TechCrunch news report*, more than 175 million people reach out to a business everyday through the messaging app. Use of features such as QR codes or product catalogs help businesses drive sales. Fintech firms also use Whatsapp chatbots that can automate responses, direct customers to FAQs and help in resolving queries.

Chatbots make up for a crucial digital sales channel in the fintech space. Payment apps, banking apps and websites, trading platforms/apps use chatbots to provide customer support, drive engagement or help with buying services.

Online marketplace model

Further, fintechs have also leveraged the online marketplace model as a digital sales channel. Take for instance, the fintech lending marketplace which lets consumers compare loans, interest rates or investments marketplace that lets consumers compare different mutual funds from leading fund houses.

Social commerce

If you thought social media is all fun and play, think again. Social media platforms like Facebook, YouTube and Instagram also double up as digital sales channels for businesses. According to the Salesforce’s ‘State of the Connected Customer’ report from 2022,  71 per cent of those surveyed in India said they expected to shop via social media in the coming three years, while 77 per cent said they would use contactless payments. This shows the growing popularity of social media as a digital sales channel to drive growth. Fintechs have used YouTube and social media platforms to create engaging financial content, including “how to” videos on trading, mutual funds or insurance, to drive not just engagement  but also for conversion.

The Salesforce report also noted that 57 per cent of customers prefer to engage via digital channels. Also, millennials and Gen-Zers at 65 per cent each were more aligned to digital channel engagement. With millennials and Gen Z making up for more than 50 per cent of India’s population, digital sales channels are on the rise and will only grow.

A great example of how fintechs are leveraging digital sales channels for growth and expansion comes from the rising number of demat accounts in India. In April 2023, the number of India’s demat accounts grew to 116 million, an increase of 26 per cent from a year earlier. A significant reason for this rise is that app-based trading platforms have made it easy to open accounts and buy their varied services on multiple digital channels such as Whatsapp, via chatbots or live chats on their websites or on apps.


With an adoption rate of 87 per cent, India’s fintech space is more than the global average of 64 per cent, according to recent reports. The rise in fintech adoption is in line with the rise in expanding digital sales channels for growth.