Mar 24, 2025 05:10 PM IST
Bengaluru product manager Sachin Jha’s wife joined an investment bank which classified Zerodha as “not trusted” due to its lack of a physical banking presence.
A customer of brokerage Zerodha had to close his accounts due to a compliance mandate which claimed it was “not a trusted broker.” However, CEO Nithin Kamath responded swiftly to his problem, winning his “trust for life”.
This came when Bengaluru-based product manager Sachin Jha’s wife joined a global investment bank which classified Zerodha as not trusted due to its lack of a physical banking presence.
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Jha then sent a “last-ditch email” to Kamath dated December 4, 2020, since he was reluctant to leave the platform. He didn’t expect a reply.
However, Kamath responded within just ten minutes and a comprehensive action plan was triggered by the team.
They outlined the steps being taken with the banks to address compliance issues, and also requested Jha’s assistance to establish direct communication with his wife’s employer.
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Though Jha admitted that he still closed his account, he said that Zerodha “won my trust for life.”
The entire episode highlights the credibility challenges which digital-first financial platforms like Zerodha face in traditional banking environments.
In Zerodha’s case specifically, Kamath had steered clear of seeking a banking license due to its associated regulatory risks, growing Zerodha only through strategic partnerships.
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Kamath has also previously acknowledged these issues publicly and Jha noted that the entire experience provided “a $2 billion lesson in customer obsession” through the company’s rapid acknowledgment, planning, and transparent communication about its challenges.
