The Next HDFC Bank? Slice Matches HDFC in Monthly Account Openings After NESFB Merger

Digital banking startup Slice has made a transformative leap by matching HDFC Bank in monthly account openings after merging with North East Small Finance Bank in October 2024. This strategic move marks a significant milestone for Slice as it establishes itself among India's top banking entities, as per the Moneycontrol Report.

Slice Hits About 3 Lakh Monthly Account Openings Post Merger

Since its merger with NESFB, Slice now opens approximately 3 lakh bank accounts every month, coinciding with industry leaders like HDFC Bank. The digital-first banking approach, cost-effective onboarding, and broad accessibility have played a pivotal role in attracting customers, many of whom are from Tier 2 and Tier 3 cities. Slice has also doubled its deposits since the merger and achieved profitability, impacting both customer acquisition and investor sentiment positively.

From Prepaid Cards to Full-Fledged Banking

Founded in 2016, Slice initially offered prepaid cards with credit features tailored for young and new-to-credit users. However, regulatory restrictions in October 2022 led to a halt in customer onboarding, motivating the company to pursue a banking license aggressively. By October 2024, the merger with NESFB enabled Slice to operate as a full-fledged bank with integrated infrastructure, including core banking systems and underwriting capabilities.

UPI Credit Card Innovation and Market Scope

Slice launched India’s first UPI-powered credit card, eliminating many acquisition and servicing costs of traditional cards. By leveraging mobile-based interfaces, the company plans to target 300 million underserved, credit-worthy Indians, not just the existing 40-50 million credit card holders. Transactions starting as low as ₹500 and digital onboarding pave the way for mass adoption.

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Customer-Friendly Savings Account with High Yield

The Slice savings account offers 100% of the repo rate as interest, currently around 6.5%. There are no annual charges or minimum balance requirements. Unique daily interest payments, enabled by Slice's proprietary core banking stack, increase transparency and customer satisfaction features rarely available in traditional savings accounts.

UPI-Led Branches and ATM Deployments

The bank’s innovative branch strategy includes the deployment of UPI-enabled ATMs that support both cash deposits and withdrawals. These self-service machines will evolve into complete banking points capable of account openings and debit card issuance. With reduced infrastructure costs, Slice can channel savings back to the customer as higher yields and lower fees.

Digital-First Customer Demographic

Most customers are salaried individuals or freelancers aged around 30-32, with 60-70% residing outside metro cities. The mobile-friendly services, zero face-to-face interactions, and high financial inclusivity have made Slice particularly attractive to tech-savvy and underbanked users. The bank is currently seeing growth of 3 lakh customers monthly without significant advertising spend.

Conclusion

Slice’s transition from a fintech prepaid card provider to a full-scale digital bank is reshaping India’s financial services landscape. Matching HDFC Bank in monthly account openings, launching UPI-backed credit products, and offering high-yield savings accounts, Slice is poised to transform banking accessibility for hundreds of millions of Indians.

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