India’s public sector banks (PSBs) are preparing to introduce financial products specifically designed for startup founders and gig workers. These innovative schemes will address the needs of these underbanked segments and promote inclusive entrepreneurship. The Department of Financial Services (DFS), operating under the Ministry of Finance, has directed PSBs to build resilience in credit risk and financial inclusion as part of the upcoming EASE 8.0 agenda.
Under the new framework, named EASE – Rise (Risk & Resilience, Innovation, Social & Economic Impact), PSBs will undergo strategic reforms that prioritize risk culture, digital innovation, and hyper-personalized banking experiences. The new version of the Enhanced Access and Service Excellence (EASE) agenda will launch in the upcoming fiscal year.
Supporting the Underserved: Why PSBs Must Act
India’s startup ecosystem continues to grow rapidly. At the same time, gig workers now form a vital part of the economy through platforms like Swiggy, Zomato, Uber, and freelance portals. However, traditional banking often overlooks these groups due to irregular income patterns, lack of formal employment, and minimal credit history.
Startup founders regularly face rejections from traditional lending channels because they operate high-risk, early-stage businesses. Gig workers also struggle to secure loans or credit cards without fixed salaries or documentation. PSBs now aim to change this dynamic by creating products tailored to these needs.
Officials from DFS have asked banks to develop credit appraisal mechanisms that factor in the unique challenges of these emerging workforces. These banks must not only disburse funds but also assess long-term financial stability and promote a resilient banking ecosystem.
Key Focus Areas Under EASE – Rise
1. Credit Risk Resilience and NPA Management
DFS has instructed PSBs to adopt credit risk models that account for non-traditional income streams. Startups often show fluctuating cash flow and little historical revenue data. Gig workers earn daily or weekly through varied platforms. Banks must learn to evaluate creditworthiness based on behavioral data, digital transactions, and platform histories rather than legacy documentation.
This step will reduce reliance on traditional credit score systems and encourage fairer financial access. Banks must simultaneously focus on proactive NPA (Non-Performing Asset) management to protect their balance sheets while serving higher-risk customers.
2. Customized Financial Products
PSBs will design new financial tools for startup founders and gig workers. These tools may include:
- Revenue-based financing for startups instead of equity-diluting loans.
- Microcredit products for gig workers with flexible repayment schedules.
- Insurance and pension products designed for workers with no fixed benefits.
- Digital wallets and transaction monitoring systems for credit scoring.
- BNPL (Buy Now Pay Later) models adapted to gig economy lifestyles.
By building these products, banks can empower new-age entrepreneurs and independent workers who remain underbanked despite driving India’s economic engine.
3. Bank-Incubator Connect and Startup Ecosystem Growth
Public sector banks will not limit their role to lenders. They will also organize incubator support programs that connect startup founders with incubators and accelerators. These programs will provide mentorship, networking, and technical support to help ventures grow sustainably.
PSBs aim to collaborate with innovation hubs across IITs, IIMs, and private startup accelerators. This approach will turn banks into ecosystem enablers, not just transactional partners.
4. Digital Transformation and Business Process Reengineering
Under the EASE – Rise model, PSBs must digitize both internal and external workflows. This transformation will enhance efficiency, cut costs, and improve customer experiences. Banks will implement:
- AI-driven credit assessments for speed and accuracy
- Blockchain for contract security and loan tracking
- Automated loan processing workflows
- Mobile-first customer service models
- API integrations with third-party financial service providers
These changes will rewire how PSBs operate and deliver banking services in real time.
5. Customer Experience and Hyper-Personalization
Banks must shift from one-size-fits-all approaches and provide personalized digital banking experiences. PSBs already collect vast amounts of customer data through KYC and transactional footprints. Now, they must use AI and machine learning to offer relevant product suggestions, contextual offers, and seamless customer journeys.
Vivek Iyer, Partner and Financial Services Risk Leader at Grant Thornton Bharat, emphasized that while PSBs have made progress in data-driven banking, hyper-personalization remains underdeveloped. According to him, banks must now focus on compliance culture, governance, and a robust audit framework to build trust in their digital models.
6. Third-Party Risk Management and Data Privacy
EASE – Rise prioritizes technology upgrades. PSBs will modernize their tech stack to ensure data quality, governance, and privacy. Today, many banks rely heavily on third-party vendors for digital services. However, they lack a unified third-party risk management framework. Vendor audits alone cannot ensure system security and compliance.
Banks must now develop centralized frameworks for managing third-party relationships, including cloud storage providers, fintech partners, and IT vendors. Data protection and cybersecurity will form a core pillar of the transformation journey.
7. Lean Banking and Cost Optimization
EASE – Rise encourages PSBs to optimize branch networks and explore lean banking models. Banks will assess underperforming branches, redirect resources toward digital channels, and close redundant facilities. This exercise will save costs and allow banks to reinvest in digital infrastructure.
New-age channels such as video banking, chatbot services, WhatsApp banking, and mobile-first interfaces will form the frontlines of customer interaction. These channels will offer banking services anytime, anywhere, aligning with the lifestyles of today’s mobile-driven users.
Vision for EASE – Rise: Empowering India’s Economic Future
With EASE – Rise, the government plans to turn PSBs into digital, inclusive, and innovation-driven financial institutions. Startup founders and gig workers will no longer operate outside the formal credit system. Banks will treat them as critical economic contributors, worthy of tailored services and scalable financial support.
The reform agenda builds on years of progress under earlier EASE versions. From branch-level efficiency improvements to better credit monitoring systems, PSBs have modernized their operations steadily. Now, they must evolve further to match the aspirations of India’s youngest and fastest-growing workforce.
By aligning financial products with innovation, resilience, and social impact, PSBs can become champions of India’s next wave of entrepreneurs.
Conclusion
Public sector banks are preparing to launch a financial revolution under the EASE – Rise framework. They will empower startup founders and gig workers through customized credit products, digital workflows, AI-driven assessments, and ecosystem support. These reforms promise to make banking more inclusive, intelligent, and future-ready.
With implementation set for the next fiscal year, PSBs must act decisively. Their success will not only define the future of Indian banking but also shape the trajectory of India’s entrepreneurial ecosystem.
Read More: European Startups Focused on Ethical AI
Also Read: Startup Mahakumbh 2025: Why It’s a Must-Attend