Blog-post

As world economic scales rise and fall daily, there are institutions that have persistently secured profits and ensured growth, year after year through prudent management that moves in tandem with innovation and pre-emptive planning.

Welcome to the World of BLS, where cumulative company wide efforts have resulted in perineal growth for each year for the past 15+ years of operations.

Before we delve into the present fiscal discussion, allow us to give you a brief recap of the quarter gone by.

Recap of Q1

Towards the end of the First Quarter (Q1) of 2022, BLS’s subsidiary- namely BLS E-Services Pvt Ltd. acquired ZERO Mass Private Limited (ZMPL) to become the largest business correspondent (BC) of SBI, thereby furthering its array of services within its homeland.

The strategic move allowed BLS to gain access to all of ZMPL’s alliances, projects, networks, and resources, which included:

1. The contract to be the largest business correspondent for SBI (which is >15% of all SBI BCs across India.)
2. 11,500 active CSPs, which is more than 15% of all SBI BCs, with a pan-India presence in all States and Union Territories
3. Contracts with Utkal Grameen Bank and Karur Vysya Bank that account for ~5-6% of the bank accounts, deposit base, and the aggregate value of transactions of the BC system in India.

As a result of this acquisition, BLS has established a robust network of centers to deliver last-mile banking services to the unserved and underserved rural and remote populations as part of the Financial Inclusion Program of Govt. Of India.

Together with ZMPL and the earlier acquired Starfin, BLS now offers various banking services like enrolment of customers, opening bank accounts, balance inquiry, money transfer, passbook updating, etc.

The Difference in Q2

As we inch towards presenting the next quarter’s report, allow us to explain the main differentiator between Q1 and Q2’s report, which will enable you to gauge the results with a holistic understanding of the organization’s current and future prospects.

Earlier, in the reports predating Q2 2022, the gross business outcome was presented as one entity. Meaning the business from all our services like VACs, E-Governance and BC were cumulatively presented.

This was due to the majority of our business , which came from our global services like VACs, Hence  minor was the business from our citizenship services (<10%) that we couldn’t present them as a separate stream of business.

However, the advantageous acquisition of ZMPL has been a game changer.

Following this change, BLS International’s fiscal reports shall be presented with two business streams, namely VAC services and Fintech.

The Rationale Behind Fintech

‘Fintech’ is to be reckoned as the broader business division of BLS that incorporates all the E-governances and banking correspondence services offered by the organization.

The division marks the recognition of the organization’s growth in the sector, which has gone from <10% to >18% – a substantial growth for a single quarter.

This bifurcation of the revenue streams is also cognisant of and compliant with SEBI’s norms.

Further Inspection

Seeing the dramatic rise in the revenue from Fintech in Q2, we have kept a keen focus on this segment and its services.

Strengthening and finetuning our current services with the reassessed focal points can put BLS in a more agreeable position to capture the market and perhaps even extend our array of services.

Where this opportunity is within reach on the domestic front, it is also important to note that the global market isn’t far from reach either. The key to success in this avenue may lie in optimizing our core potencies to support these prospects.

How BLS Can Capitalize the Fintech Sphere

BLS International already possesses the working mechanism that serves as a foundation for the Fintech stream of business. To hone our services further, we will:

• Focus on large ticket-size projects and establish own centers for contracts.
• Offer more services to the existing client (states and banks), thereby increasing their wallet share.
• Tap new geographies and states for their business.
• Potentially tap global networks and take the business model worldwide.
• Investing in technologies to tap exciting possibilities related to digitalization last

mile penetration and enhanced service experiences.

• Investing in and developing our identity tech management via blockchain, facial recognition, AI, chatbots, , to boost servicing capabilities.

In Summation,

To summarize, the upcoming quarterly results amply highlight the next large-scale business potential. Where BLS has begun on the journey of diversifying its business, there’s room for further expansion and growth.

This growth can be scaled and multiplied by further fine tuning our organization’s existing skill set. A focus on this arena may eventually lead to the expansion of the Fintech division globally.