Blog - The Digital Fifth

Subscribe for Newsletter Our Upcoming Events Podcast Videos

Lending fintech ecosystem is going through a tough phase, where existing business models face challenges in terms of sustenance and valuation. We believe that this phase will re-baseline the ecosystem with following changes: - Banks / NBFCs: Significant players are moving towards digital to help build books as their branches are expected to generate limited business. These players will also look for digital transformation for reducing their Cost Income Ratio to compensate for the anticipated losses on the credit side. These lenders will consume services of B2B players, including Data Providers, Lending, and Collection Platforms. These lenders will also partner with Fintechs for sourcing loans across Consumers as well as the SME segment. - Lending Fintechs (Consumer & SMEs) are working on multiple approaches including: · Pivoting: Many players are moving towards NeoBanking to secure their businesses from “dependency on credit” · Widening of Portfolio: Single product startups are adding newer products like supply chain financing. · Performance Improvement: Sharper players are using this time of lower credit activities for improving their processes, products and partnerships. · Downsizing & Closure: The recruitment market is inundated with ex-employees of these Fintechs. Few short-term lenders have already closed shop as they lost significant portfolio due to moratorium. · Raising Funds: Investors are backing their current portfolio instead of funding newer ones. B2B players like those providing banking data, KYC platform, Alternate Credit Platforms, and LOS / LMS will see higher traction in next 12 months as more and more lenders will utilize them to become efficient. Significant funding will move towards B2B segment as investors look for innovations in areas beyond direct lending.

Indian Lending Fintech Ecosystem

in July 10, 2020

Top 30 Indian Open Banking Influencers

in July 1, 2020

India Fintech Funding 27th May – 24th June 2020

in June 24, 2020

Indian Digital Banking Ecosystem

in June 11, 2020

Digital Banking- Back on Top agenda at Board

in June 1, 2020

Shashank Shekhar

Open Banking Ecosystem

in May 20, 2020

API Infrastructure Platform- Giving impetus to Startups

in April 28, 2020

Shashank Shekhar

Emerging Trends in Open Banking

in April 11, 2020

Shashank Shekhar

Tech is Tech until proven business

in April 9, 2020