Traditional lending practices are rapidly becoming obsolete as financial institutions seek more innovative credit solutions. This transformation is critical, given the IFC’s finding that 40% of formal MSMEs in developing countries face an annual financing gap of $5.2 trillion. Accenture recently shed light on this transformation – their latest survey found 90% of businesses showing […]
Understanding MSME Loans: Opportunities and Challenges for Lenders
Micro, Small, and Medium Enterprises (MSMEs) are a significant part of the Indian economy. The export value of MSME-related products for the financial year 2024-25 alone constitutes 45.79% of all India exports. However, despite their importance, MSMEs face significant challenges in finding financial support. According to an International Finance Corporation (IFC) report, the barriers include: […]
Cloud-Based vs. On-Premises Loan Origination Software: Pros and Cons for Financial Institutions
Modern loan origination software has eliminated historical barriers through powerful integrations, enhanced functionality, and optimised costs. These advances have transformed conventional banking platforms characterised by complex setups and rigid infrastructure. However, one critical decision financial institutions face when adopting such software is choosing between cloud-based and on-premises loan origination software. Each option comes with its […]
From Data to Decisions: AI’s Role in Modern Credit Underwriting
Today, Artificial Intelligence (AI) plays a transformative role across various sectors. In financial services, a recent survey, for instance, indicated that 13% of banks are already leveraging AI in lending operations to boost efficiency and performance. Over 50% of the surveyed banks aim to invest $100,000 or more in machine learning-driven credit models over the […]
Understanding the Growing Demand for Study Abroad Loans
Global education dreams often clash with financial realities. While over 1.3 million Indian students are studying abroad in 2024, many found their ambitions constrained by the staggering costs. A typical master’s program at a US university now demands an investment of ₹24 lakhs to ₹96 lakhs, placing international education beyond the reach of most middle-income […]
RBI Innovation Hub: Building a Unified Lending Interface with Aggregators
In recent years, India’s digital lending industry has significantly boomed. Statista reports that it’s one of the “fastest-growing FinTech segments.” For instance, it grew from USD 9 billion to USD 270 billion in the latest decade (2012-2022). According to many analysts, it’s all thanks to strategies offered by the RBI Innovation Hub (RBIH). Recently, they […]