Blog - NewNerve

Regulators and Associations in the Indian Fintech Landscape, 2024

4May

By Ankit4 Comments

BFSI, Blog, Regtech

Regulators and Associations in the Indian Fintech Landscape, 2024

The Indian Fintech sector operates within a complex regulatory framework involving multiple entities. Let's delve into the key regulators and associations that play a crucial role in shaping and guiding this dynamic ecosystem: 1. Regulators: Reserve Bank of India (RBI): The central bank of India, RBI, is responsible for regulating various aspects of the financial system, including payments, banking, and lending. It has played a significant role in fostering innovation within the Fintech space through initiatives like regulatory sandboxes and the launch of UPI. Securities and Exchange Board of India (SEBI): SEBI regulates the securities market in India, overseeing activities related to stock exchanges, mutual funds, and investment advisors. Fintech companies involved ...

Fintech Categories in India: A Comprehensive Overview with Examples

4May

By Ankit3 Comments

BFSI, Blog, Fintech

Fintech Categories in India: A Comprehensive Overview with Examples

The Indian Fintech landscape is a vibrant ecosystem brimming with innovation and diversity. To understand this dynamic sector better, let's explore the different Fintech Categories operating in India, along with relevant examples: 1. Payments: This category encompasses companies facilitating digital transactions, including mobile wallets, UPI apps, and payment gateways. Examples: Paytm, PhonePe, Google Pay, Razorpay, PayU 2. Lending: Fintechs in this space offer various loan products, including personal loans, business loans, and microloans, often leveraging technology for faster approvals and streamlined processes. Examples: Lendingkart, ZestMoney, EarlySalary, KreditBee, Capital Float 3. Wealth Management: These Fintechs provide investment platf...

Fintech-BC Collaboration Success Stories

4May

By AnkitNo Comments

BFSI, Blog, Fintech

Fintech-BC Collaboration Success Stories

Several fintech companies in India have successfully collaborated with BCs to offer innovative financial products and services, driving financial inclusion and empowering underserved communities. Let's explore some notable examples: 1. Paytm: Paytm has partnered with BCs to expand its reach and offer micro-loans, micro-insurance, and other financial services to rural customers. Its mobile wallet and payment platform have enabled seamless transactions and financial access for BC customers. 2. PhonePe: PhonePe has collaborated with BCs to provide digital payments, money transfers, and bill payments in rural areas. Its user-friendly app and extensive network of BCs have made financial services accessible to a wider population. 3. eMudh...

4May

By AnkitNo Comments

BFSI, Blog, Fintech, Microfinance

Fintech-BC Collaboration: Driving Innovation in Financial Inclusion

Fintech companies are actively collaborating with BCs to offer innovative financial products and services, expanding access and catering to the diverse needs of unbanked and underserved populations. Let's explore some key areas of collaboration to drive innovation in Financial Inclusion: 1. Digital Onboarding and KYC: Fintech companies are providing digital platforms and mobile apps to streamline customer onboarding and KYC (Know Your Customer) processes for BCs. This reduces paperwork, accelerates account opening, and improves the overall customer experience. 2. Micro-loans and Credit Scoring: Fintech companies are leveraging alternative data sources and machine learning algorithms to develop innovative credit scoring models for BC customers. ...

28Apr

By Ankit2 Comments

AI, Blog, IndiaAI, Technology

What is Artificial Intelligence (AI)?

Artificial Intelligence (AI), in its broadest sense, refers to intelligence exhibited by machines, particularly computer systems. It is a field of research in computer science that develops and studies methods and software enabling machines to: Perceive their environment. Learn from data and experiences. Take actions that maximize their chances of achieving defined goals. AI technology is widely used across various domains, including: Advanced web search engines (e.g., Google Search). Recommendation systems (used by YouTube, Amazon, and Netflix). Human speech interaction (e.g., Google Assistant, Siri, and Alexa). Autonomous vehicles (e.g., Waymo). Generative and creative tools (e.g., ChatGPT and AI art). Superhuman play and analysis in strategy games (e.g....

27Apr

By AnkitNo Comments

BFSI, Banking, Blog, Digital Lending, Lending

How BNPL Companies make Money?

BNPL companies (Buy Now Pay Later) employ various strategies to generate revenue. Let’s explore how BNPL Companies make money: Merchant Fees: BNPL providers charge e-commerce platforms and retailers a fee for integrating their BNPL services. This fee ensures that the BNPL option is available during checkout on these platforms. Interest and Fees on Late Payments: If consumers fail to repay within the stipulated period, BNPL companies charge interest or late fees. These penalties contribute to their revenue. Credit Risk Management: BNPL firms assess credit risk and set credit limits for users. They earn by managing this risk effectively and ensuring timely repayments. Partnerships with Financial Institutions: Some BNPL providers collaborate with banks or financial institution...

Buy Now Pay Later (BNPL) in India: A Growing Trend, 2024

27Apr

By AnkitNo Comments

Lending, BFSI, Blog, Digital Lending

Buy Now Pay Later (BNPL) in India: A Growing Trend, 2024

The pandemic has accelerated the adoption of digital payments in India. Online payment transactions more than doubled in 2021 compared to 2020, crossing a billion in number. Buy Now Pay later (BNPL), which allows consumers to purchase items upfront and pay for them later within a stipulated period, has become increasingly popular. Let’s delve into the details: What is BNPL (Buy Now Pay later)? BNPLs (Buy now Pay Later) are small-ticket loans that empower consumers to buy products online and offline without immediate payment. They can either pay in a lump sum or opt for the no-cost EMI route. The underlying principle is to enhance consumer spending power through readily available credit. How Does BNPL Work? Purchase and Selection: After making a purchase, customers choose BNPL as th...

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...

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...