Fintech companies disbursed loans amounting to Rs 31,692 crore, up 43% year-on-year and 15% sequentially, a report by fintech lobby group Fintech Association for Consumer Empowerment (FACE) said Tuesday. This report analysed disbursement data of 37 FACE member fintech companies.
In volume terms, digital lenders extended 2.44 crore loans during Q2, higher than 2.22 crore in Q1 and 1.75 crore in Q2FY23. Volume growth rates varied significantly across companies on account of different scale and segment focus, and access to capital, FACE said. Overall, two-thirds of the companies reported positive growth in disbursement volumes. The average loan ticket size was Rs 10,591, marginally higher than Rs 10,209 in Q1.
Overall, total assets under management of fintech lenders stood at Rs 36,169 crore as of September 30, with 69% loans on the lenders’ own balance sheet. For fintech companies which are either an NBFC or own an NBFC arm, 79% of the AUM is on their own balance sheet.
The report said based on data from 23 companies on customer complaints, nearly 100,000 complaints were received, of which only 1% is pending resolution. On a more granular basis, 41% of complaints were resolved within a day and 97% within seven days. Credit bureau updates or disputes were the biggest reason for customer complaints, followed by application issues and lack of adequate disclosures.
Says Sugandh Saxena, CEO at FACE, “Data signals strong customer confidence in digital lending…The regulatory foundation and fences are shaping the industry to grow and mature wholesomely, constantly investing and improving customer protection, underwriting models and portfolio quality…”
While digital lenders’ loan business has been robust during Q2, analysts expect a slowdown in offtake of small-ticket loans with the regulator’s move in November to hike risk weights on personal loan segment by 25%.
