Lending - NewNerve

RBI Governor Announces Unified Lending Interface (ULI) to Streamline Credit

27Aug

By Ankit1 Comment

Digital Lending

RBI Governor Announces Unified Lending Interface (ULI) to Streamline Credit

The Reserve Bank of India (RBI) has recently announced the launch of the Unified Lending Interface (ULI), a significant technological advancement aimed at revolutionizing the lending landscape in India. This initiative is designed to facilitate frictionless credit access, particularly for small and medium-sized enterprises (SMEs) and rural borrowers. In this article, we will explore the key features of ULI, its potential challenges, and how it plans to handle misinformation and ensure data accuracy. Key Features of the Unified Lending Interface (ULI) Seamless Data Flow: ULI enables a consent-based flow of digital information from various data service providers, including government databases and credit information companies, to lenders. This integration aims to streamline the credit ...

5 Ways ONDC’s Financial Services are Revolutionizing Access to Credit for MSMEs

23Aug

By AnkitNo Comments

Lending

5 Ways ONDC’s Financial Services are Revolutionizing Access to Credit for MSMEs

The Open Network for Digital Commerce (ONDC) is revolutionizing the landscape of financial services in India, particularly for micro, small, and medium enterprises (MSMEs). As a government-backed initiative designed to democratize e-commerce, ONDC's latest foray into financial services aims to enhance cash flow, improve access to credit, and foster financial inclusion for small businesses across the country. This article delves into the various aspects of ONDC's financial services, including their impact on cash flow, specific offerings, data security measures, the role of technology service providers, and competitive positioning against existing digital lending platforms. Enhancing Cash Flow for Small Businesses ONDC's financial services are set to significantly improve the cash flow of...

Beyond Payments: How Fintech Firms Use Microfinance Licenses to Expand Their Offerings

26Jun

By Ankit2 Comments

BFSI, Fintech, Global BFSI, International Reports, Microfinance

Beyond Payments: How Fintech Firms Use Microfinance Licenses to Expand Their Offerings

The microfinance sector has traditionally been the domain of specialized lenders focused on serving the underbanked. However, in recent years, a new trend has emerged - fintech companies are increasingly acquiring microfinance banking licenses to expand their capabilities. According to Eric Ntumba, the acting CEO of Baobab Microfinance Bank, this strategic move by fintechs is driven by their desire to go beyond just being payment platforms. "Most fintechs present themselves primarily as payment platforms. However, once they obtain a microfinance banking licence, they can also lend. Thus, they become relevant competition as they are equipped to perform the same regulatory activities we do," Ntumba explained. The advantages for fintechs are clear. By obtaining a microfinance ...

Simpl’s Layoff Spree Continues: 30 Employees Let Go, Senior Leadership Restructured

6Jun

By AnkitNo Comments

Digital Lending, Lending

Simpl’s Layoff Spree Continues: 30 Employees Let Go, Senior Leadership Restructured

Bengaluru-based consumer credit startup Simpl has announced another round of layoffs, letting go of 30 more employees just a month after firing 160. The company informed the affected employees through one-on-one meetings on Thursday. This latest round of layoffs follows the departure of three to four senior executives on Wednesday. Vatsal Jain, Vice President of Enterprise Business; Ashwini Ravindranath, Vice President of Partner Success; and Ramkumar Narayanan, Vice President of Product and Operations, have all resigned. A company spokesperson stated that the decision to lay off 30 employees is part of their efforts to become fiscally prudent and achieve profitability by mid-2025. The affected employees will receive a severance package including a fixed salary for the two-month noti...

India’s Election Under Siege: 300% Surge in Cyber Attacks

24May

By AnkitNo Comments

Fintech, Insurtech, Lending

India’s Election Under Siege: 300% Surge in Cyber Attacks

As India prepares for its crucial general election, a wave of cyberattacks threatens to disrupt the electoral process. Cybersecurity firm Resecurity has identified a staggering 300% surge in attacks targeting voter data and public opinion, orchestrated by various hacktivist groups exploiting geopolitical tensions. The #OpIndia campaign, launched last year, saw a dramatic increase in cyber activity following the initiation of #OpIsrael, coinciding with heightened online protests related to the Israel-Gaza conflict. With a vast population and growing economy, India has become a prime target for foreign threat actors and nation-state groups. Resecurity's report highlights the importance of safeguarding elections from cyber threats to preserve democratic integrity, particularly in the cu...

Niro Crosses Rs 1,000-Cr Loan Disbursals: A Remarkable Milestone in Consumer Lending

22May

By AnkitNo Comments

Fintech, Digital Lending, Lending, Startups

Niro Crosses Rs 1,000-Cr Loan Disbursals: A Remarkable Milestone in Consumer Lending

Niro, the embedded consumer-lending platform, has achieved a significant milestone by surpassing Rs 1,000 crore ($125 million) in overall disbursals since its launch in 2022. Within just 27 months, Niro has transformed the lending landscape, offering personal loans ranging from Rs 30,000 to Rs 5 lakh. Let’s delve into the details of this remarkable achievement and what it means for the fintech industry. The Journey to Rs 1,000 Crore: Niro’s journey began with a vision—to make credit accessible to all, especially through non-traditional channels. In the first 20 months, Niro disbursed Rs 500 crore, demonstrating its rapid growth. The subsequent Rs 500 crore was disbursed in just over seven months, highlighting Niro’s agility and customer demand. Strategic Partnerships: N...

Zeta Revolutionizes Credit Access with New UPI-Based Stack: Aims for $1 Trillion Market by 2030

10May

By Ankit1 Comment

BFSI, Digital Lending, Fintech, Lending, Startups, Technology

Zeta Revolutionizes Credit Access with New UPI-Based Stack: Aims for $1 Trillion Market by 2030

Zeta, a leading fintech startup, has launched a new technology stack to support credit line-based transactions on the Unified Payments Interface (UPI). This move aims to revolutionize the way credit is accessed and utilized in India, potentially leading to a trillion-dollar market by 2030. Key Highlights: Zeta's new stack allows banks to offer credit lines to customers directly through UPI, eliminating the need for separate credit card applications. The company aims to process 50% of all UPI credit disbursals by 2030, signifying a massive opportunity for growth. Zeta will act as a technology service provider (TSP) for financial institutions, handling everything from customer onboarding and underwriting to lifecycle management and analytics. This initiative aligns with Zeta's...

Lendingkart Secures USD 10 Million Boost for SME Lending via BlueOrchard ECB

8May

By AnkitNo Comments

BFSI, Digital Lending, Lending, Startups

Lendingkart Secures USD 10 Million Boost for SME Lending via BlueOrchard ECB

Lendingkart, a leading fintech company in India, has secured USD 10 million via an external commercial borrowing (ECB) from a BlueOrchard fund. This funding will be used to further expand the company's lending operations and reach a wider customer base. Lendingkart offers a range of financial products and services to small and medium-sized enterprises (SMEs) in India. The company has disbursed over INR 10,000 crores in loans to over 1.5 lakh customers since its inception in 2014. The ECB from BlueOrchard will provide Lendingkart with additional capital to support its growth plans. The company plans to use the funds to expand its product portfolio, hire new talent, and enter new markets. Commenting on the funding, Harshvardhan Lunia, Co-founder & CEO of Lendingkart, said: "We ...

PSBs’ Spreads Hit 10-Year Low: Implications for Lending, Deposits, and Profitability

8May

By AnkitNo Comments

BFSI, Lending, NBFC

PSBs’ Spreads Hit 10-Year Low: Implications for Lending, Deposits, and Profitability

Public Sector Banks (PSBs) in India have seen their spreads between lending and deposit rates shrink to a 10-year low of 2.28%, according to data from the Economic Times BFSI. This is significantly lower than the 3.81% spread maintained by Private Banks (PVBs). This narrowing of spreads reflects several factors, including: Increased competition: The banking sector in India is becoming increasingly competitive, with both PSBs and PVBs vying for market share. This has put pressure on banks to offer lower lending rates and higher deposit rates, leading to a compression of spreads. RBI's policy stance: The Reserve Bank of India (RBI) has been maintaining an accommodative monetary policy stance in recent months, which has helped to keep interest rates low. This has also contributed t...

The Business Correspondent Model: Expanding Financial Access in India

6May

By AnkitNo Comments

BFSI, Blog, Fintech, Lending, Microfinance, Payments

The Business Correspondent Model: Expanding Financial Access in India

The Business Correspondent (BC) model is a crucial component of India's financial inclusion strategy, aiming to extend financial services to unbanked and underserved populations in rural and remote areas. Let's delve deeper into how this model works: 1. What is a BC? A BC acts as an intermediary between a bank and its customers, providing basic financial services at the last mile. These individuals or entities are typically local entrepreneurs or community members who understand the local context and have the trust of the community. 2. Services Offered by BCs: BCs typically offer a range of services, including: Account opening Cash deposits and withdrawals Money transfers Micro-loans Micro-insurance Bill payments ...