Small businesses and budding entrepreneurs often lack past financial statements to prove their creditworthiness to banks. This gap opens up doors for a more efficient system to take its place. And digitising lending became the answer. Since time immemorial, lending has been an integral part of our society. Evidence of money lending and credit systems […]
While experts believe the RBI hike will not be a problem for digital lenders, BNPL players will unquestionably be in the firing line. In response to the surging inflation across the nation, the Reserve Bank of India decided to hike the benchmark policy repo rate by another 50 basis points. This hike comes on top […]
India’s credit gap widened in tandem with the economy’s unprecedented growth. In such a market condition, debt financing can be of some help, if not for the straining procedures, collateral demands, and heavy paperwork. As banks fell short of presenting a favourable image to businesses, NBFCs became the obvious choice for credits. In all this, […]
Ever since RBI released updated guidelines on co-lending, it has become a more accomodating topic across the news. Home loans are a specific area where co-origination can enhance collaboration between banks and NBFCs. Certain Housing Finance Companies (HFC) have shifted to an asset-light model. With a model which is relatively common in the developed markets […]
Financial assistance for promising businesses is critical to India’s objective of creating an entrepreneur-friendly economy. A vendor’s most significant hurdle to establishing business is financing. Did you know that 77% of working Indians are dependent on personal loans to stay afloat? That is precisely where RBI-approved Co-lending came in as a blessing – to address […]
Data and AI Lead at Microsoft, Canada, Ozge Yeloglu, famously said: “Big data may be cheap to collect, but it’s expensive if you don’t know what you want to get out of it.” The financial or digital lending industry is arguably one of the biggest consumers and creators of this big data—bank statements, PAN, financial […]
So let’s get straight to it: digital lending is the future. However, as per Experian’s take on digital loan conversions, 97% of applicants abandon the digital lending process, leaving a teeny-tiny 3% conversion rate. While digital loans have a fantastic appeal of convenience that people love, this appeal doesn’t guarantee conversion. Fortunately, we have the […]
Risk assessment makes or breaks a business model, especially in the banking sector. Establishing a solid process of risk assessment maximises business and minimises risks. This brings us to evaluate the current risk assessment practices and reassess how reliable or efficient they are. Open banking enables this reassessment and gives the chance to eliminate any […]
Over the ages, traditional banks have struggled to play a bigger role in the expansion of SaaS companies. On the surface, a SaaS company lacks many of the traditional creditworthiness indicators, such as inventory and receivables. With intangible assets and technologies that some banks still consider experimental despite decades of proof points, SaaS companies struggle […]
Consumer credit has seen record growth since the pandemic. Across all income brackets in the country, there has been a sustained upsurge in demand. Moreover, with the rise of the fintech ecosystem in recent years, digital credit has taken off, transforming how loans are procured and disbursed. Additionally, digital loans’ popularity is attributable to increased […]
