With the advancement of online banking and globalisation, lenders are exposed to money laundering and financial fraud more than ever. The latest UN findings reveal that criminals launder between $2.22 and $5.54 trillion annually, equivalent to 2% to 5% of the world’s GDP. For Indian banks and financial institutions, the pressure is strongly felt. Both […]
Credit score service companies are becoming a vital component of risk management as we see a decrease in the Gross Non-Performing Assets (GNPA) ratio for scheduled commercial banks to 2.8%, marking a 12-year low. Traditional methods often fail to assess borrowers accurately. These companies are developing innovative solutions to improve creditworthiness evaluations. Through advanced analytics, artificial intelligence, and […]
The Reserve Bank of India’s (RBI) Unified Lending Interface (ULI) is a groundbreaking technological innovation poised to transform the Indian lending sector. The digital platform aims to facilitate the loan application process by providing lenders with quick access to comprehensive financial data through standardised APIs. This way, ULI reduces paperwork, speeds up approvals, and improves […]
The Economic Times reports that it could take upward of seven years to solve all the pending debt recovery cases in India. The report also states that more than 200,000 pending cases are waiting at the Debt Recovery Tribunals (DRTs) which handle around 30,000-40,000 each year. Despite consistent efforts and timely reforms to improve the […]
A thorough analysis of a borrower’s financial data is one of the most important aspects of the underwriting process. Inaccurate analysis can open up lenders to risks. These include delayed payment of EMIs (Equated Monthly Installments), and non-repayment of loans. Inaccurate analysis usually results from lenders leaving out certain metrics during the underwriting process. Failure […]
Proactive regulatory initiatives, evolving consumer behaviours, and the thriving funding environment have propelled the growth of the Indian fintech ecosystem. Digital lending is expected to account for around 5% of retail loans in India by the first half of 2028. As more and more customers, particularly, the millennial and Gen Z groups embrace the convenience […]
Access to timely credit is crucial for an individual’s or a business’s financial and social development. The Indian credit score companies offer services that help shape lending decisions, investment strategies, and overall economic stability. Self-monitoring of credit scores by Indians has risen by 73% in 2023, highlighting the growing awareness about the importance of credit […]
Loan fraud is one of the top financial risks faced by lenders today. As of May 2024, it was revealed that the number of bank frauds has increased four times over the last five years. These cases predominantly comprise digital fraud. Such incidents have caused major concerns across the industry. Some lenders have been triggered […]
As of March 2024, the gross non-performing assets (GNPAs) ratio for scheduled commercial banks stands at 2.8%, a 12-year low, exhibiting an improvement in managing default risks. Despite this, lenders must be continually wary of the impact of risky loans, as it is not just limited to the lending institutions’ profitability. It significantly undermines the […]
According to a report, the number of cases referred to the debt recovery tribunal (DRT), grew significantly to INR 4.02 trillion in FY23. Yet, the amount recovered via this route downslided to 9.2% in FY23 as compared to 17.5% in FY2022. This translates to the debt recovery rate for non-performing assets (NPAs) falling from 17.6% […]
