The Reserve Bank of India (RBI) introduced Credit Line on UPI in September 2023, a move designed to bridge credit gaps and make credit more affordable and convenient for the underserved population. Additionally, the decision could also encourage credit card users to switch to UPI credit lines, providing a seamless credit alternative other than conventional […]
Future of P2P Lending and Its Direct Impact on Loan Origination Systems
Peer-to-peer (P2P) lending became a global phenomenon after the 2008 financial crash, emerging as a reliable alternative to traditional financial institutions including banks. While P2P lending businesses started entering the Indian market in 2014, it wasn’t until 2017 when the Reserve Bank of India (RBI) issued guidelines suggesting that all P2P service providers must be […]
Revolutionising EMIs: How CLOU (Credit Line on UPI) is Redefining India’s Credit Landscape
The launch of UPI in 2016 has transformed the financial landscape in India. However, there remained a gap in how the credit was accessed. India’s credit access and repayment system is a lengthy and cumbersome process that feels like a trap more than a solution. The introduction of CLOU (Credit Line on UPI) is set […]
Exploring the Potential of Decentralised Finance (DeFi) in Loan Management
Decentralised Finance (DeFi) is an umbrella term for a financial system built on blockchain technology. It aims to provide an open, permissionless, and decentralised alternative to traditional financial setups. Compared to the conventional loan management process, DeFi lending does away with intermediaries, connecting the lender and the borrower directly. The global decentralised finance market was […]
Open Banking vs Platform Banking: Implications for Traditional Banks
Traditional banks often struggle to adapt due to a lack of innovation and personalised services, leaving them vulnerable to disruption. Open banking addresses these issues by securely enabling data sharing between banks and approved third parties via application programming interfaces (APIs). This collaborative method sharply contrasts with traditional banking’s siloed data model. India’s open banking […]
Embedded Finance: Security Challenges and Some Emerging Solutions
The traditional banking setup has seen a complete overhaul with increasing technological advancements. It may seem like a new world, from loans in 59 minutes to digital wallets. All this has been made possible by embedded finance, which allows the integration of financial services into non-financial services. Its ecosystem is anticipated to grow at a […]