FinTechs are emerging as a key competent of the Indian Financial Services ecosystem - backed by macro opportunity and well-developed public digital infrastructure.
A strong growth has been witnessed in the consumer credit industry. We have seen robust demand growth across the country and across income segments. In fact, we see the pace of demand increasing in non-tier 1 cities, younger demographics and in lower income segments.
Lending players leverage technology to reach these digitally-enabled consumers, who were previously underserved, and are able to do it at scale.
Growth of Fintech in India
India has one of the largest FinTech markets in the world with over 2000 companies, and a large and digitally-savvy consumer base. The early players in the Fintech industry were mostly payments-focussed. Now, a broad range of financial services and consumer segments are being served by these companies. FinTechs are emerging as a key competent of the Indian Financial Services ecosystem – backed by macro opportunity and well-developed public digital infrastructure.
How Lending Players Offer Easy Financial Assistance?
Digital lending players meet a critical need, that of providing access to credit – at a time when customers need it the most. Since we are digital – this service is available to customers across the country, through an app. We are opening up access in the form of quick and often smaller ticket size loans (not usually offered by traditional banks and lenders) – and are serving customers whom traditional Banks typically don’t serve.
Our products have no (or minimal documentation) requirements, brilliant customer journeys and disbursal is within minutes. We use technology to underwrite and use alternative data sources – allowing us to reach deeper into the customer base and serve even those who don’t have bureau history.
How Lending Players Play A Crucial Role in 2021 and The Years to Come?
India’s consumer credit markets grew by 18% to $613 billion, between 2017 and 2020, and the number of small personal loans disbursed (<25K in value) — jumped 23X in that time. This boom in India’s retail borrowing and its new group of borrowers presents a great opportunity for digital lending players. We recognise that we have to win the trust of the consumer, connect with the consumer seamlessly (e.g. using vernacular) and use data to personalize our offering to each individual customer.
(By Sucheta Mahapatra, MD-India, Branch Personal Finance App)