AXIS Bank observes a tremendous growth
A senior official said that even if policymakers struggle to find ways to stimulate demand in the pandemic economy, Axis Bank’s (NSE 0.16%) online sales festival offers a 15% discount and daily transaction volume has increased by ten times.
As part of the 10-day “Grab Deals Fest” that lasts until July 4th, the bank will provide its debit and credit cardholders with a 15% fixed refund on cooperative e-commerce portals such as Flipkart and Amazon.
“If we compare it with the daily average of the month before the launch, we see that the total expense in gross value of the merchandise has multiplied by 10, and the number of clients that use the offer has grown almost in a similar way,” said its president and head of digital business and transformation, Sameer Shetty.
We can point out that the second wave of the COVID19 pandemic has hit the demand of the entire economy. Many analysts say that private consumption has fallen, and even essential foods have been affected. They said that even if lockdown measures are relaxed, demand will take time to recover because income generation must first be recovered.
Typically, many e-commerce sales events occur during the holiday period towards the end of the year, and there are reports that e-commerce participants expect their activities to weaken this year. However, Shetty said the bank has seen an increase in orders from urban areas where e-commerce orders are active but emphasized that the orders are for all income classes.
The bank launched this offer because it believes that the second wave is now fading and people are getting rid of the pressure. The main goal of the lender is to get the maximum number of customers to take advantage of the offer instead of viewing GMV.
Shetty said that discounts are shared between banks and major e-commerce companies and insisted that banks do not want to hold large shopping festivals and will continue these transactions regularly. Shetty stated that the response to the current offer was “far beyond” expectations and expressed the belief that by the time the offer is finalized, the bank’s performance will be much better than initially expected.