One of the most challenging parts of the lending business is loan recovery techniques. Even though international norms have been put in place to help lending institutions recover their money, these techniques essentially do not work or take a painfully long time in practice. There is an existing culture of non-repayment, which results in liquidity […]
Bad Debt Recovery Strategies: Reduce Risks and Improve Collections
Vijay Mallya, Anil Ambani, Pramod Mittal, Nirav Modi—something strikes, doesn’t it? Whilst most of you are familiar with these names, some of you might also be aware of their not-so-happily-ever-after entrepreneurial journey; who were once “Business Tycoons” are now on the list of notorious bankrupts. As much as their lavish lifestyle sparked our interest, when […]
Your Guide to OCEN and How It Is Disrupting India’s Lending Industry
OCEN, or Open Credit Enablement Network, is a framework and protocol introduced by Nandan Nilekani in July 2020 as part of IndiaStack. India’s lending industry can still be considered in its nascent stage. Banks and NBFCs essentially only lend to the organised sector and large corporations. This has caused a large swath of India’s small […]
Know the Difference Between Credit Bureau and Credit Rating Agency
Credit bureaus and credit rating agencies are easily confused, especially because credit bureaus are also referred to as “credit reporting agencies.” Credit bureaus, such as Equifax, Trans Union CIBIL, and Experian are agencies that give information about an individual’s creditworthiness. They provide credit reports and credit ratings to creditors, such as banks, to assist them […]
How Finezza Helped Gromor & Udhyam Alter Bengaluru’s Iron-walas
The pandemic has proved how technology can reverse every adversity into an opportunity. The massive digitisation of Indian businesses has led to non-conservative finance models like co-lending to gain a foothold. While co-lending is still nascent, it is gaining popularity among stakeholders, .i.e. banks, NBFCs, and HFCs, for its high risk and reward. Co-lending as […]
Challenges and Opportunities Facing India’s Digital Microfinance
The Internet revolution and increased mobile penetration across rural markets have fuelled the emergence of digital technologies in India’s microfinance sector over the last decade. MFIs have now begun to adapt to new technology trends for faster loan origination, efficient customer service and delivering flexible lending requirements using alternate channels. The proliferation of low-cost mobile […]