WhatsApp plans to offer loans, insurance and pensions to users in India

WhatsApp is becoming a platform that goes beyond instant messaging. One of the points Facebook is betting the most on in this regard is mobile payments and fintech in general. While payments between people are still being deployed by WhatsApp, the service already seeks to offer more solutions, such as loans, insurance, or pensions. 

According to TechCrunch, WhatsApp has announced in a virtual event what their plans are in this regard in India. The idea is to offer financial services to low-income or rural users in India. With the help of different banks in the country, WhatsApp is looking at different ways to bring banking services to those who still do not use them.

They warn that they are going to experiment with this, not knowing if it is going to work and what exactly it is going to do. Therefore, at the moment it is not clear what type of credits they are going to grant when they are going to do it and under what conditions. 

Why India? In this country they have a user base of more than 400 million people, being the most popular app in the region by far. WhatsApp is a service that is integrated into the day-to-day life of Indians more than any other. It is in all types of users, including those in rural areas where technologies do not arrive as quickly as in cities.

The intermediary between users and banks

WhatsApp, as such, will not be the one who puts the money for these credits, insurance, pensions, and other financial services of the kind. As they have indicated, they are going to partner with large Indian entities such as ICICI, Kotak Mahindra or HDFC. It will be these banks who grant the loans and WhatsApp will act as a pure intermediary between them and the clients. Given that the platform is deployed throughout the country and practically any citizen has a WhatsApp account, it is much easier for WhatsApp to access them than for a bank that does not have a direct presence throughout the country. 

A similar strategy we have seen in other large technology, which while offering banking services to the consumer really has the support of a financial institution behind. The most important recent example is that of Apple with its Apple Card, where they take care of all the procedures with the user and the JP Morgan bank to offer the money and the credits.

At another interesting point where WhatsApp is acting as an intermediary in between businesses and users for customer service communications, reservations, and others like that. Through WhatsApp Business it is possible for users to connect directly by WhatsApp with businesses and solve their doubts or problems. It has also arrived in Spain and the business in this is to charge companies or sell through an integrated store.