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RBI’s Regulatory Moves: Personal Loan Growth Slows Down
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Digital Lending, Fintech, NBFC, Startups

RBI’s Regulatory Moves: Personal Loan Growth Slows Down

The FinTech sector isn’t the only one feeling the impact of regulatory actions. Banks are now treading carefully in the realm of personal loans, thanks to the Reserve Bank of India’s (RBI) recent moves. Let’s delve into the details and understand how this cautious approach is affecting borrowers and lenders alike. Moderated Growth in Personal Loans According to RBI data, the year-on-year growth of unsecured personal loans has taken a step back. In February, it moderated to 23.1%, down from 24.4% in January and 27.6% in December 2023. This shift reflects banks’ response to the RBI’s concerns about the rapid expansion of personal loans. But what prompted this change? Let’s explore: The RBI’s Action Plan In November of last year, the RBI decided to tighten t...
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Indian FinTech’s Funding Falls by Over 66% in FY24: Navigating the Downturn
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Fintech, Digital Lending, Finance, Payments, Startups

Indian FinTech’s Funding Falls by Over 66% in FY24: Navigating the Downturn

In a significant development for the Indian FinTech sector, the financial year 2024 has witnessed a substantial decline in funding for FinTech startups. The Indian FinTech sector, a beacon of innovation and growth, has faced a significant funding slump in the financial year 2024. According to data from Tracxn, the industry witnessed a 66.67% year-on-year decline in funding, managing to raise only $1.5 billion1. This stark downturn compares to the $4.5 billion raised in the previous fiscal year, marking a challenging period for startups in the space. This decline is primarily attributed to a decrease in seed-stage funding. The trend reflects the challenges faced by the industry, including increasing borrowing costs and macroeconomic conditions. Let's delve deeper into the details. De...
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Revolutionary Ways Small Business Loans Are Shattering Gender Barriers for Women Entrepreneurs in 2024
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Lending, Finance, Fintech, Microfinance

Revolutionary Ways Small Business Loans Are Shattering Gender Barriers for Women Entrepreneurs in 2024

The Role of Small Business Loans: In an effort to combat gender biases in entrepreneurship, financial institutions are increasingly focusing on empowering women-led SMEs through small business loans. Despite the growth of India’s economy and the significant contribution of MSMEs to the GDP, women-led businesses still face substantial challenges in obtaining credit financing. Recent studies highlight a stark gender disparity within India’s entrepreneurial landscape, attributed to socio-cultural norms, access to credit, and family responsibilities. However, women entrepreneurs remain optimistic about their business growth and recovery. Also Read: RBI’s Risk Weight Hike: Implications for Incremental Bank Lending to NBFCsGovernment initiatives like Mudra Yojana and the Women Entrepre...
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Navi’s 90-10 Rule: Scaling Up Despite RBI’s Unsecured Loan Norms
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NBFC, Digital Lending, Fintech, Startups

Navi’s 90-10 Rule: Scaling Up Despite RBI’s Unsecured Loan Norms

Navi Technologies Scaling Up Despite RBI’s Unsecured Loan Norms In an exclusive interview with Moneycontrol, Navi Technologies founder and chairman Sachin Bansal revealed that despite the recent tightening of risk weight for unsecured loans by the Reserve Bank of India (RBI), the company has been scaling well. Navi Finserv, a fintech company, is currently offering its third non-convertible debentures (NCDs) with an issue size of Rs 600 crore. Notably, around 90 percentof Navi’s portfolio consists of unsecured loans, such as personal loans, while the remaining 10 percent comes from home loans. Also Read:Microfinance Sector Witnesses Robust Growth: Loan Accounts Surge 9% and NBFC Disbursements Soar 32% What’s particularly interesting is that two-thirdsof Navi Technologies’ cus...
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Microfinance Sector Witnesses Robust Growth: Loan Accounts Surge 9% and NBFC Disbursements Soar 32%
1 Comment
BFSI, Digital Lending, Lending, NBFC

Microfinance Sector Witnesses Robust Growth: Loan Accounts Surge 9% and NBFC Disbursements Soar 32%

The microfinance sector in India is experiencing a remarkable surge in loan accounts, with significant growth indicators across various metrics. Let’s delve into the latest developments: Loan Accounts Reach New Heights As of December 31, 2023, the number of microfinance loan accounts serviced by micro lenders has witnessed a 9% year-on-year increase, totaling an impressive 140.8 million accounts. This surge reflects the growing demand for microfinance services, especially among underserved communities. Diversified NBFCs Lead the Way Notably, diversified non-banking financial companies (NBFCs) have played a pivotal role in driving this growth. Their microfinance disbursements surged by an astounding 32% year-on-year during the December quarter, marking the highes...
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Global Fintech Newsletter, March 2024, by NewNerve
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Fintech, Global BFSI, Insurtech, Lending, Payments, Regtech, Wealthtech

Global Fintech Newsletter, March 2024, by NewNerve

Here’s a summary of some notable Fintech news from March 2024: Visa and Mastercard Settlement: US merchants reached a landmark settlement with Visa and Mastercard to lower swipe fees. The credit interchange rates will be capped for the next five years, resulting in an estimated $29.79 billion in savings for US merchants. Robinhood’s Leadership Change: Baiju Bhatt, co-founder and chief creative officer of Robinhood, stepped down after ten years at the company to “pursue other entrepreneurial interests.” Vlad Tenev, CEO and fellow co-founder, praised Bhatt’s pivotal role in opening access to markets for millions of new investors. Co-operative Bank Job Cuts: The UK’s Co-operative Bank is set to cut around 400 jobs (12% of its workforce) as part of a cost reduction progra...
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RBI’s Risk Weight Hike: Implications for Incremental Bank Lending to NBFCs
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Digital Lending, NBFC

RBI’s Risk Weight Hike: Implications for Incremental Bank Lending to NBFCs

The Reserve Bank of India (RBI) recently implemented a significant increase in risk weight for bank exposures to Non-Banking Financial Companies (NBFCs). This move is expected to have a notable impact on incremental bank lending to the NBFC sector. In this article, we will explore the implications of the RBI's decision and discuss the potential consequences for the lending landscape. Key Points: Decrease in Bank Loans to NBFCs: As of January 2024, outstanding bank loans to NBFCs stood at Rs 15.03 trillion. However, in FY23, banks extended only Rs 3.08 trillion to finance companies, a significant decline compared to the previous year's Rs 73,831 crore. This downward trend can be attributed to various factors, including the tightening of risk weights by the RBI. Projections for FY25: ...
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Perfios and NPCI Collaborate to Revolutionize RuPay Credit Card Onboarding Process, 2024
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Digital Lending, Fintech, Lending

Perfios and NPCI Collaborate to Revolutionize RuPay Credit Card Onboarding Process, 2024

Perfios and NPCI collaboration: In a significant development for the Indian financial industry, Perfios, a leading fintech company, has joined forces with the National Payments Corporation of India (NPCI) to introduce a unified onboarding framework for RuPay credit cards. This collaboration is part of NPCI's co-creation initiative and aims to streamline and optimize the onboarding process, enabling customers to obtain their RuPay credit cards in less than two minutes. This exciting partnership holds the potential to revolutionize the way individuals access and utilize credit in the country. Enhancing Onboarding Efficiency: The traditional process of applying for a credit card in India has often been associated with lengthy paperwork, complex verification procedures, and time-consuming a...
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How to Navigate the Regulatory Landscape for Fintech in India: A Comprehensive Guide, 2024
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Digital Lending, Fintech, Lending, Payments, Regtech, Wealthtech

How to Navigate the Regulatory Landscape for Fintech in India: A Comprehensive Guide, 2024

  Expanding Horizons: India’s Fintech Ecosystem India’s fintech sector is a beacon of innovation, with a diverse range of offerings that cater to a rapidly growing consumer base. The ecosystem is rich with opportunities, particularly in the realms of Digital Lending, Insurance technology (Insurtech), Regulatory technology (Regtech), Wealth management technology (Wealthtech), and Virtual Digital Assets (VDAs). Digital Lending - The Financial Catalyst:  Digital lending platforms in India have revolutionized access to credit for both individuals and businesses. Companies like QuickPaisa provide a seamless online platform for various lending products, ensuring transparency and convenience1. The sector is expected to grow significantly, with fintechs playing a crucial role in enhanc...
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