Third Party Products selling is a big revenue stream for Most of the Banks apart from the conventional lending businesses.
However, the Payments Banks cannot lend money as the Banks do and hence in order to earn revenues based on Fees based model, they have started to cross sell Insurance Products.
It is expected that soon they shall be also pitching/cross selling the Mutual Funds and other similar products through their online network. Airtel Payment Bank alone has around 250,000 banking points and over 150,000 Savings Accounts. Imagine if all Payment Banks start aggressively in cross selling Insurance & Other Financial Products, the kind of cut down on costs which would happen. The whole market shall see a sea change in this regard.
Due to growing digitization, online selling shall become more cheaper and aggressive!!