The co-lending model, introduced by the Reserve Bank Of India (RBI) in 2018, is a mechanism where banks and non-banks join hands to provide credit to the priority sector. The co-lending arrangement allows NBFCs (Non-Bank Financial Companies) which operate in deeper geographies and lend to the MSME Sector (Micro, Small and Medium Enterprises), LIG (Low-Income […]
Customer Onboarding Automation for Contactless Service
Know Your Customer (KYC) is the process by which a lender verifies a customer’s identity and other information using documentation such as PAN Card, Driver’s License, Voter ID, GST Registration, Aadhar Card and so on. Customer onboarding has traditionally been a costly affair with physical collection of documents and in person verification, which when coupled […]
Core Banking vs Retail Banking: What’s The Difference?
When a bank representative approaches us to open an account, they usually inform us that their bank provides core banking facilities. Similarly, when we log in for net banking, we’re asked if we’d like to use a retail or corporate login. Even though retail and core banking are critical components of today’s banking system, they […]
How Collaborative Lending Can Extend Credit to the Underbanked
Governments globally have strived hard to usher in financial inclusion within their respective economies sustainably and responsibly. Yet, the undeniable truth is staring; most of the population has moved from being unbanked altogether to being underbanked. However, this large chunk of people can maintain bank accounts, perform transactions etc., on their digital devices, all thanks […]
How Account Aggregators can Lead to Safe Lending Decisions
Before disbursing loans to individuals and organisations, the first thing any banks or lenders do is to vet their financial situation and lending eligibility. Lending institutions will want to know if you’ll be able to pay back the money you borrowed (the principal) plus interest in a fair amount of time. Then came the Account […]
What are Payment Service Providers and how do they Work?
Digital payments have become so commonplace today that consumers involuntarily reach out to their smartphones for making purchases for virtually anything and everything under the sun. It is no shocker that over 40 billion digital transactions amounting to a value of more than quadrillion Indian rupees were recorded in the financial year 2021 alone! In […]