Historically, poor credit penetration results in the marginalised sections of society like low-income households, women and Micro, Small, and Medium Enterprises (MSMEs) being excluded from the formal lending channels. However, the MSME sector plays a critical role in the economic development of India. The share of MSME Gross Value Added (GVA) in India’s Gross Domestic […]
6 Ways Tech in Finance is Transforming Microfinance Institutions
The microfinance sector has evolved rapidly since Muhammad Yunus pioneered the movement around three decades ago. India, one of the fastest-growing economies in the world, banks on microfinance for sustainable growth and economic development due to the significant rise in the number of micro, small, and medium (MSMEs) seeking swift, organised, and streamlined access to […]
How Lending Lifecycle Management Can Help Lenders Optimise Finances
The lending industry has become extremely competitive over the last few years. Traditional players such as banks and non-banking financial companies (NBFCs) have undergone digital transformation to keep pace with demand and unlock new opportunities. Several digital banks, neobanks, digital lending apps, and peer-to-peer lending platforms have mushroomed to make credit more accessible to a […]
Role of Digital Lending Solutions in Emerging Markets
The digital lending industry has transformed the landscape of borrowing and lending money. Today, traditional banks are not the only option for financing. Digital lending solutions have evolved as potent catalysts for economic growth and financial inclusion, predominantly in emerging markets. Experts predict that the digital lending sector will reach a massive USD 1.3 trillion […]
Loan Management System in India: Ensuring Data Security and Confidentiality
With the emergence of digital lending platforms and increasing reliance on technology for loan management, India’s financial environment has experienced a substantial transition recently. The digital lending market in the country has experienced significant development in recent years. According to a Boston Consulting Group (BCG) survey, the digital lending market is anticipated to reach an […]
What Does the Implementation of the CFSS by the RBI Mean for NBFCs?
The Reserve Bank of India (RBI), through a circular, notified Middle Layer and Upper layer Non-banking Financial Services (NBFCs) to mandatorily implement Core Financial Services Solution (CFSS) as of October 1, 2022. The CFSS is akin to the Core Banking Solution (CBS) adopted by banks, which enables the integration of different NBFC functions on a […]