The Fintech industry is leading the digital transformation among all the industries. Gone are the days when customers visited physical branches of banks or NBFCs for every operational and transaction need. Today, almost all banks and NBFCs provide online services through multi-channels like web, mobile, tab, pos machines, ATMs, smartwatches, smart voice assistants, etc. However, […]
Signs Of Business Loan Fraud And How It Can Be Prevented
The advent of new technologies has paved the way for a new era of financial services within the digital ecosystem. Thanks to the milieu of fintech companies, small to medium-sized businesses can get access to capital resources easily. However, with new pathways, opportunities are rife for sophisticated fraud strategies, greatly harming the financial services industry. […]
Proactive Credit Risk Management: Developing an Early Warning System
As per a report, as of March 31, 2023, 2,623 borrowers were classified as wilful defaulters in India and owed Rs 1,96,049 crore to the banks in India. This highlights the inherent risks lenders face. Therefore, financial institutions (FIs) need robust credit risk management to minimise risk and boost returns and productivity. An early warning […]
Is Your Loan Management System Meeting Regulatory Compliance Standards?
The rapid advances in fintechs and their adoption have led regulatory bodies such as the Reserve Bank of India (RBI) to scrutinise the digital lending guidelines closely to limit compliance breaches. For example, In October 2024, four Non-Banking Financial Companies (NBFCs) were barred from sanctioning and disbursing loans due to regulatory violations. Also, earlier this […]
The Price of Unchecked Growth: RBI Governor Warns NBFCs
Today, a growing number of Non-banking Financial Companies (NBFCs) face immense pressure to drive higher returns. In the pursuit of this goal, some NBFCs are engaging in irregular practices, which can invite strict action by the Reserve Bank of India (RBI). For instance, the RBI recently imposed restrictions on four NBFCs that were charging exorbitantly […]
The Digital Lending Revolution: Startups vs. Big Banks
Despite their best efforts, established banks often suffer from manual approaches and outdated processes. Vis-a-vis modern customer expectations of a quick approval time and flexible digital lending, these barriers usually force borrowers to seek alternate solutions. Fintech startups and lending businesses aim to close this exact gap. But the question is, how well-stacked are the […]