Non-banking Financial Companies (NBFCs) are integral to the financial system. Their contribution to financial inclusion initiatives, dissemination of timely credit to the Micro, Small and Medium Enterprises (MSMEs) and infrastructure development projects are all significant chapters in the story of India’s thriving digital economy. As of October last year, India has 9500 registered NBFCs with […]
The creditworthiness of a person determines their probability of obtaining a loan from a bank or other financial institution. Furthermore, it also summarises how worthy they are of getting new credit in the future. Typically, lenders go through an individual’s debt and credit management history to assess their creditworthiness before approving or rejecting their application. […]
A Non-Banking Finance Corporation (NBFC) is a company that carries out the business of a financial institution as per Section 451(c) of the RBI Act. Their functioning falls under the purview of the Ministry of Corporate Affairs and the Reserve Bank of India. Presently, NBFCs are involved in lending activities, leasing, hire-purchase, insurance, receiving deposits […]
The last five years have witnessed a significant rise in the market share of fintech companies. For instance, the global fintech lending market size alone was estimated to be valued at $449.89 billion. By 2030, it is projected to rise to $ 4957 billion, growing at a CAGR of 27.4%. Small businesses, in particular, are […]
Loan management is a crucial part of the lending industry, and it involves tracking, servicing, and managing loans from application to closing. The global loan servicing software market is estimated to reach $ 4812.08 million by 2028, with a CAGR of 12.19%. The manual loan management process can be time-consuming, complex, and prone to errors, […]
Digital transformation has influenced the rate at which business or personal loans can be disbursed. As of 2023, the value of the digital lending market in India is estimated to be $ 350 billion, primarily driven by fintech startups and non-banking financial companies (NBFCs). Despite this growth, loan rejection rates are also climbing. For instance, […]
The rapidly evolving digital space has impacted the banking and finance sector and triggered a massive transformation. The emergence of innovative technologies like fintech solutions, APIs (Application Programming Interfaces), and new regulations are transforming how people use financial services. These developments have also given rise to a new-age banking practice, open banking. Simply put, open […]
In the banking industry, interest rate risk is an integral part of the business. As interest rates rise, the portfolio’s value will decrease, and when interest rates fall, the portfolio’s value will increase. The duration gap analysis measures how sensitive a portfolio’s value is to interest rate changes. A duration gap is a financial and […]
According to data released by the Reserve Bank of India (RBI), During the fortnight ending on February 10, India’s banking system credit showed a 16.1 % year-on-year (YoY) increase to a ticket-size INR 134.17 trillion. This is a significant increase from when credit growth stood at just 9% a year back. The rising demand for […]
One of the biggest challenges consumers and providers of financial services face is the lack of a seamless, secure mechanism to access and transfer financial data. For instance, when borrowers apply for business loans on lending apps, they need to share a host of information to establish their creditworthiness. The borrower will need to […]
