Microfinance institutions (MFIs) in India deal with seven recurring challenges: over-indebtedness among borrowers, interest rates higher than mainstream banks, heavy reliance on the banking system for funds, weak investment validation, low borrower awareness of financial services, inconsistent regulation, and the choice of an unsuitable lending model. Each challenge hits a different stage of the lending […]
How to Ease the Lending Process through Bank Statement Analysis?
An applicant’s bank statement gives a periodic view of all the transactions undertaken by them including deposits, withdrawals, transfers, debit card payments, interest earned, bank service fees, as well as the other instalments they are paying. Lenders analyze the frequency of the transaction to estimate an applicant’s ability to repay the loan in time. Analyzing […]
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 […]
Lending Lifecycle Management Trends for 2020
NBFCs and MFIs are increasingly strategizing ways to grow and compete in the largely untapped arena of commercial lending, in a rapidly evolving market. There is a massive opportunity for lenders to leverage on the opportunity to serve their business customers better, contribute to their bottom lines, and garner higher returns for their benefit in […]
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 […]