Traditional banks have been around since the 14th century and have had a good run until now. However, the onset of new-age financial technology (fintech) firms has taken the financial world by storm. So, how have banks responded to the arrival of fintech companies? Do they see them as unwanted intruders? Are they willing to […]
Microfinance: What Lenders Should Consider While Approving a Microloan
Microfinance is generally associated with financial inclusion and poverty alleviation. It aims to help individuals and small businesses who have limited access to conventional banking services. In a broader sense, microfinancing refers to providing financial services like access to money transfers and savings accounts, credit facilities, and insurance to the economically weaker segments (EWS) of […]
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 […]
How Finezza’s Co-lending LMS Can Benefit Your Co-lending Process
Loan syndication by banks has always existed for large business loans. The real challenge is in the small and medium-sized enterprises (SMEs) market, which represents a significant share of the digital lending landscape in India. A conservative estimate puts this market at a whopping $300-$400 billion by 2025! The Indian finance industry has long used […]
Why Do Higher Interest Rates Highlight Supply Chain Finance?
The global economy is currently navigating troubled waters. Many countries face the impending threat of recession as their economies slow down and inflation rates touch all-time highs. The crisis, caused by a double whammy of pandemic curbs, and the ongoing military escalation in Europe, has disrupted supply chains around the world, driving up the cost […]
Is Co-lending Changing the Credit Landscape in India?
The concept of co-lending has existed in the banking, financial services, and insurance (BFSI) sector for some time. However, the Reserve Bank of India (RBI) issued guidelines in November 2020 permitting non-banking financial companies (NBFCs) and banks to loan money to the underserved segments of the economy by leveraging the lower cost of funds from […]