Did you know that Non-Banking Financial Companies (NBFCs) can leverage data and digitisation to facilitate lending? It can lead to reduced costs, faster approvals, and increased financial inclusion. According to BCG, this might enable a 15X growth in this market, reaching INR 7 lakh crore in annual disbursements. But what drives this growth? It is […]
The Digital Lending Revolution: Startups vs. Big Banks
Despite their best efforts, established banks often suffer from manual approaches and outdated processes. Vis-a-vis modern customer expectations of a quick approval time and flexible digital lending, these barriers usually force borrowers to seek alternate solutions. Fintech startups and lending businesses aim to close this exact gap. But the question is, how well-stacked are the […]
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 […]
Should Lenders Adopt API Banking Over Traditional Banking: A SWOT Analysis
According to reports, around 87% of Indian households use fintech services. This has made banks and credit unions invest heavily in APIs, which act as digital bridges to securely share financial information and services. The latest PYMNTS data shows that 47% of lenders have already invested heavily in APIs in 2022. But why are the […]
How Can Banks Monetise Open Banking Platforms?
COVID-19 led to a disruption in different sectors, and banking is no exception. Nonetheless, with the application of Open Banking in the field, banks have found their way back to stability. The recent waves of digitisation have broadened the scope of significant technological changes in the banking sector. Be that as it may, well-established banks […]
RBI’s Surveillance of Digital Lending Apps: Productive or Obstructive?
The Indian digital lending sector, an industry virtually non-existent nearly a decade back, has grown by leaps and bounds in the last three to four years. The market valued at $14 billion in 2013, is expected to reach $350 billion by 2023 and $1.3 trillion by 2030. An enormous credit demand in the economy fuelled […]