April 2024 - NewNerve

Transparency in Digital Lending: RBI’s New Draft Guidelines for Loan Aggregators

27Apr

By Ankit1 Comment

BFSI, Digital Lending, Goverment Notice/Circulars, Lending, Regtech

Transparency in Digital Lending: RBI’s New Draft Guidelines for Loan Aggregators

The Reserve Bank of India (RBI) has recently unveiled a draft circular that outlines a framework for loan product aggregation by lending service providers (LSPs). The primary objective of this initiative is to enhance transparency for borrowers in the credit intermediation process. Let’s delve into the details of this significant development. Background and Challenges In the digital lending space, LSPs play a crucial role by offering aggregation services for loan products. These LSPs, or even regulated entities (REs) acting as LSPs, establish outsourcing arrangements with multiple lenders. Their digital lending apps/platforms (DLAs) match borrowers to suitable lenders. However, a critical challenge arises: borrowers often lack upfront information about the potential lender. I...

Decoding RBI’s Draft Guidelines on Digital Lending- 26th April 2024

26Apr

By AnkitNo Comments

BFSI, Blog, Digital Lending, Goverment Notice/Circulars, Lending, Review

Decoding RBI’s Draft Guidelines on Digital Lending- 26th April 2024

The Reserve Bank of India (RBI) has issued draft guidelines to ensure transparency in the aggregation of loan products from multiple lenders. This move is aimed at enhancing customer centricity and ensuring complete transparency for borrowers in the credit intermediation process. Key Highlights of the Draft Guidelines: Aggregation Services: Many Lending Service Providers (LSPs) offer aggregation services for loan products. An LSP or a Regulated Entity (RE) acting as an LSP may have outsourcing arrangements with several lenders. The Digital Lending App/Platform (DLA) of the LSP/RE matches the borrower to one of the lenders. In cases where an LSP has arrangements with multiple lenders, the identity of the potential lender may not be known upfront to the borrower. Prior Information t...

India’s Journey from Crisis to Confidence: Decoding the Shaktikanta Das’s Vision

26Apr

By Ankit1 Comment

BFSI, Banking, Blog, Digital Lending, Finance, Fintech, Goverment Notice/Circulars, NBFC, Payments, Review, Technology

India’s Journey from Crisis to Confidence: Decoding the Shaktikanta Das’s Vision

In a recent speech, Reserve Bank of India Governor Shaktikanta Das outlined India's remarkable journey from crisis to confidence. Drawing on historical events and economic data, Das paints a picture of a nation that has overcome numerous challenges to emerge as a global economic powerhouse. Overcoming the 1991 Crisis Das begins by acknowledging the various crises India has faced in recent decades, including the 1991 balance of payments crisis, the 2008 global financial crisis, and the ongoing COVID-19 pandemic. He emphasizes the crucial role played by the RBI in steering the economy through these turbulent times. The 1991 balance of payments crisis was a defining moment for India. With dwindling foreign exchange reserves and a ballooning fiscal deficit, the country faced the threa...

Apple’s OpenELM: An Open Language Model for iPhone and Laptops, 2024

26Apr

By AnkitNo Comments

AI, Business, Technology

Apple’s OpenELM: An Open Language Model for iPhone and Laptops, 2024

Apple, a tech giant known for its innovation, has recently unveiled a new open-source language model called OpenELM. This model is designed to run efficiently on iPhones and laptops, promising exciting possibilities for AI applications in Apple devices. What Is OpenELM? OpenELM stands for Efficient Language Model and is part of Apple’s broader strategy to enhance AI capabilities on its devices. The company aims to enable local execution of AI models directly on iPhones and other Apple hardware. By doing so, Apple seeks to empower developers and users with powerful language processing capabilities without relying solely on cloud-based services. OpenELM, or Open-source Efficient Language Models, is a series of open-source AI models developed by Apple. Here are some key details: On-...

PCI’s New Initiative Launched: Securing Payment Cards in the Middle East

26Apr

By AnkitNo Comments

Global BFSI, Technology

PCI’s New Initiative Launched: Securing Payment Cards in the Middle East

The Payment Card Industry (PCI) Security Standards Council is expanding its role to the Middle East, aiming to enhance the security of card transactions in the region. As card-based payments continue to rise, so does payment-card fraud. In response, the PCI SSC has appointed a regional director for the Middle East to collaborate with regulators, financial institutions, and service providers on security initiatives. The Growing Challenge of Payment Card Fraud The global volume of card fraud is projected to reach $36 billion in 2024, up from $28 billion in 2020. Although the share of fraud relative to transaction volume will slightly decrease to 6.5 cents per $100, the threat remains significant. Cyberattacks, data breaches, and evolving threats like malware and phishing attempts necessita...

Alarming! 17K ICICI Bank Credit Cards Exposed: Urgent Measures Taken

26Apr

By AnkitNo Comments

Banking, BFSI, Cyber Crime

Alarming! 17K ICICI Bank Credit Cards Exposed: Urgent Measures Taken

In a shocking revelation, ICICI Bank admitted to a major data breach, exposing the credit card data of around 17,000 new customers. The bank quickly took action by blocking the affected cards and assuring compensation to the affected customers. The issue came to light when some customers noticed the full credit card number, expiry date, and CVV of unknown customers on their iMobile Pay app. The bank clarified that the data exposure was due to an error in mapping new credit cards to the wrong users in their digital channels. ICICI Bank Blocks 17,000 Credit Cards After Data Breach: What Should Customers Do? - News18 This incident raises serious concerns about the security of digital banking platforms and the need for robust data protection measures. ICICI Bank, one of India's leading...

Co-lending Model: A Collaborative Approach to Financial Inclusion in India, 2024

25Apr

By Ankit1 Comment

Blog, Banking, Digital Lending, Lending, Microfinance, NBFC

Co-lending Model: A Collaborative Approach to Financial Inclusion in India, 2024

The co-lending model has emerged as a significant innovation in the Indian financial landscape, aiming to bridge the credit gap and promote financial inclusion. This model involves collaboration between banks and non-banking financial companies (NBFCs), leveraging their respective strengths to offer wider access to credit for underserved segments. Stakeholders and their involvement: Banks: Contribute their robust risk management expertise, regulatory compliance, and access to low-cost funds. They typically originate the loan and conduct due diligence on borrowers. NBFCs: Bring their domain expertise in specific sectors, strong customer relationships, and agility in loan processing. They often handle customer acquisition, credit assessment, and loan servicing. Borrowers: Benefit...

Deep Dive into Challenges Faced by Fintech Companies in Selecting IT Services Vendors

25Apr

By Ankit4 Comments

Fintech, Blog, Global BFSI, Payments, Technology

Deep Dive into Challenges Faced by Fintech Companies in Selecting IT Services Vendors

The fintech industry has experienced explosive growth in recent years, driven by technological advancements and the increasing demand for innovative financial services. This rapid growth has created a significant demand for IT services to support various functions, including run, build, digital, and product engineering. However, selecting the right IT services vendor can be a complex and challenging process for fintech companies. Unique Challenges faced by Fintech Companies: Fintech companies operate in a highly regulated and competitive environment, with stringent security and compliance requirements. They also face the challenge of rapidly evolving technologies, requiring IT services vendors with expertise in cutting-edge solutions. Additionally, fintech companies often have complex le...

Kotak Bank’s Digital-Only Zero-Balance Savings Accounts Hit a Roadblock: RBI’s Action

25Apr

By Ankit1 Comment

Banking, BFSI, Goverment Notice/Circulars

Kotak Bank’s Digital-Only Zero-Balance Savings Accounts Hit a Roadblock: RBI’s Action

In a significant development within India’s banking sector, digital savings accounts have been reshaping traditional norms, offering unparalleled convenience and efficiency. Leading this transformation was Kotak811, which exemplified how digital banking is revolutionizing financial management in India. With features like instant activation, zero balance requirements, free virtual debit cards, and credit cards against fixed deposits (without employment or income proofs), Kotak811 met the demands of today’s tech-savvy generation. One standout feature was ActivMoney, allowing account holders to earn up to 7% interest p.a. on savings by automatically investing idle funds into fixed deposits, without penalties for withdrawal. Moreover, digital savings accounts have democratized access to...

Innovation in Code Testing: Why Nova AI Prefers Open Source LLMs Over OpenAI

25Apr

By Ankit2 Comments

AI, Startups, Technology

Innovation in Code Testing: Why Nova AI Prefers Open Source LLMs Over OpenAI

In the world of software development, code testing plays a crucial role in ensuring the quality and reliability of software applications. Recognizing this need, a growing number of generative AI startups have emerged, focusing on code testing using various approaches. One such startup is Nova AI, which has garnered attention for its unique strategy of utilizing open source Language Model Models (LLMs) instead of relying heavily on OpenAI's offerings. Nova AI: Challenging the Status Quo NovaAI, an Unusual Academy accelerator graduate, has set itself apart from its competitors by targeting mid-size to large enterprises with complex code-bases and a pressing need for effective testing tools. Founder and CEO Zach Smith, a former Googler, believes that the conventional approach taken by many ...