Small banks pad up with cricket partnerships to build brands and add customers

A SWOT analysis of Group A teams

Cricket is becoming a magnet for banks, drawing them in to explore sponsorship and partnership deals and expand their brand reach, as well as acquire new customers.

Small Finance Banks (SFB) Equitas, AU, Ujjivan and Fino Payments Bank recently partnered with teams from the Indian Premier League (IPL) and sponsored cricket events. These banks are looking for brand expansion and seeking to widen their customer base through these deals.

AU Small Finance Bank and Ujjivan Small Finance Bank were among the prime sponsors during the latest India vs New Zealand Men’s Test and One-day international series. The banks had their billboards on the boundary line and on different stands in the stadium.

Equitas Small Finance Bank and Fino Payments Bank, on the other hand, have partnered with teams from the popular Indian Premier League (IPL) T-20 cricket format. Equitas SFB has partnered Royal Challengers Bangalore and Gujarat Titans, while Fino Payments Bank has partnered with Rajasthan Royals.

Cricket tournaments, these banks believe, provide a huge opportunity to engage with wider audiences, reach a new geographical customer base, and boost brand awareness.

Anand Bhatia, Chief Marketing Officer (CMO), Fino Payments Bank, said that the bank would continue to ride on sports to drive business. “We wish to continue to invest in sports, largely cricket, primarily because this sport has the potential to attract customers who would be interested in digital banking services,” Bhatia said.

Speaking to Moneycontrol, Murali Vaidyanathan, Senior President and Country Head, Branch Banking, Liabilities, Products and Wealth, Equitas Small Finance Bank, said that tie-ups with IPL teams would give the bank exposure to new audiences and demographics.

Ujjivan Small Finance Bank refused to comment for this story. AU Small Finance Bank did not respond till the time of publishing it.

Cricket, IPL partnerships and beyond

Banks have always been interested in associating with cricket tournaments. Additionally, some banks also have some cricketers as their ambassadors.

Take the example of Equitas SFB. The lender has had Smriti Mandhana, an Indian women’s team player, as its brand ambassador from 2021. Other than Equitas SFB, private sector lender Bandhan Bank, in January 2023, launched a marketing campaign with Sourav Ganguly, former captain of the men’s cricket team.

Also read: Women's IPL: A new playground for brands looking to ride on another cricket property

In terms of partnerships with IPL teams, previously, banks such as HSBC Bank, ICICI Bank and Yes Bank had partnered with teams to launch co-branded credit and debit cards, provide various bank account services, etc. Equitas SFB and Fino Payments Bank had earlier partnered with different IPL teams to launch co-branded products and promote digital banking.

Other than banks, non-banking financial companies (NBFC) and fintechs have also struck deals and some have even been major sponsors of the tournament.

For instance, Paytm and PhonePe have had major sponsorship deals with the IPL in the past.

NBFCs such as Muthoot Fincorp partnered with Bengaluru-based Royal Challengers Bangalore while fintechs Slice, AmazonPay, Rapi Pay, One Finance, Ebix Cash, etc. have partnerships with several teams.

But why the IPL?

According to a report by Broadcast Audience Research Council (BARC), a television measurement science industry body, the 2016 edition of the IPL contributed to 22 percent of total sports viewership. But in 2018, this number jumped to 43 percent. Experts said that this number is set to rise.

Also read: IPL 2023 to see higher ad revenue riding on digital; audience reach to be on par with TV

Other than the large viewership of the tournament, bankers say it gives them a new and wider audience base. “The IPL provides us a new, digital-oriented, diverse set of people with its domestic as well as international audiences, which could work as a great tool for us,” Bhatia said.

Vaidyanathan added: “Partnerships with cricket teams are a long-term goal as they (the small banks) see the potential of growth through the tie-ups.”

Experts believe that SFBs are targeting these tournaments to work on their brand awareness as their physical reach (in terms of branches) is not that high as other banks.

“Earlier, SFBs attracted people with favourable interest rates. But now, they are at par with major banks and hence, for them to promote their services and attract audiences to avail of their services, they are partnering with different teams and sponsoring cricket tournaments,” said Jindal Haria, Associate Director, India Ratings and Research.

Greater visibility

Other than geographical reach, experts highlighted that creating awareness is another aspect for SFBs as competition from other banks, NBFCs and fintechs is becoming more intense.

“Awareness and getting visibility is a major thing that SFBs need to work on. With these partnerships, one can see SFBs getting maximum attention,” said Archana Fulwari, Assistant Professor, Maharaj Sayajirao University.

Aditya Shah, a financial and banking expert, cited brand awareness as the reason for SFBs to partner with IPL teams. “The race for deposits is very tough among banks. And in the case of SFBs, these partnerships work out very well for them as they get lots of eyeballs, especially millennials, who want quick, digital banking services. SFBs, compared to other big banks, have better digital offerings and hence, can convert these to potential customers,” Shah said.