NBFCs started operations in India in the 1960s. They began as an alternative for individuals whose financial needs were not sufficiently met by the banking system of the country. For the initial period, they operated on a limited scale without any significant impact. Here’s A Brief History about Non-Banking Financial Institutions NBFIs invited fixed deposits […]
Myths of Invoice Financing Busted: Does it Benefit a Lender?
The lack of credit is one of the biggest challenges facing India’s Micro Small and Medium Enterprises (MSME), which represent a lucrative market for banks and NBFCs. A study conducted by IFC Intellecap in June 2019 revealed that 80% of India’s 55.8 million MSMEs, in both the manufacturing and service sectors, were in dire need […]
7 Challenges faced by Microfinance Institutions
The majority of developing nations are struck with poverty as a leading roadblock to their progress. The main factor that influences the widespread poverty in regions like India is the massive disparity in income distribution. Being an agrarian economy primarily, more than half of the Indian population sustains on agriculture and allied activities. Both the […]
Understanding Core Banking Solution (CBS)
A back-end system that efficiently processes banking transactions across the various branches of a bank, core banking is the future of banking as well as the lending industry. Core banking allows inter-connectivity between branches of the same bank and facilitates management of deposit, loan, and credit processing. With CBS, customers can operate their accounts as […]
India’s Neo-Banks: Lessons to Learn for Traditional Indian Banks and Lending Businesses
Initiatives like ‘Digital India’ and intense focus on the rapid adoption of digital technology propels the Indian banking industry towards a digital-only future. Rapid digital innovation in payments and transformation in systems enabled by digital technologies is widespread around the lending industry. This has given rise to the New-Age Digital Banks…also popularly called the ‘Neo-Banks’. […]
Micro Finance in India: How it Has Evolved over the Years?
It all began when the economist cum professor Muhammed Yunus from Bangladesh began making small loans to poor families in neighboring villages in an effort to break their cycle of poverty during the countrywide famine of the 1970s. His loans were successful in elevating the poor families, and he received timely repayment. Unsuccessful in further […]