Discover a wealth of insightful materials meticulously crafted to provide you with a comprehensive understanding of the latest trends.
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 […]
NBFCs play a vital role in the financial ecosystem by extending a broad range of banking services to SMEs, entrepreneurs, and individuals lacking access to traditional banking services. A report by Research And Markets forecasts a promising future for the NBFC sector, with an anticipated CAGR of 18.5% between 2021 and 2026. Financial institutions are […]
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 advent of credit bureaus in the 1960s was a turning point for the modern credit economy as credit scores and credit reports were first introduced. While we have come a long since then. The arrival of the fintech wave, coupled with innovations, is gradually transforming and streamlining the conventional approaches. For example, technology is […]
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 […]
