Recently, cybercrime authorities froze approximately 450,000 suspected mule bank accounts. The State Bank of India reported nearly 40,000 detected cases, making it a primary target. As digital transactions surge and fraud tactics become increasingly sophisticated, vulnerabilities in how banks verify new accounts are laid bare. This is why lenders need to understand how money mules […]
With the advancement of online banking and globalisation, lenders are exposed to money laundering and financial fraud more than ever. The latest UN findings reveal that criminals launder between $2.22 and $5.54 trillion annually, equivalent to 2% to 5% of the world’s GDP. For Indian banks and financial institutions, the pressure is strongly felt. Both […]
Over the last five years, the fintech industry in India has grown by leaps and bounds. As of September 2024, the combined valuation of all Indian fintech startups was estimated to be $125 billion. However, despite their success story, startups often grapple with a slew of challenges. For instance, the regulations governing fintech startups are […]
Credit score service companies are becoming a vital component of risk management as we see a decrease in the Gross Non-Performing Assets (GNPA) ratio for scheduled commercial banks to 2.8%, marking a 12-year low. Traditional methods often fail to assess borrowers accurately. These companies are developing innovative solutions to improve creditworthiness evaluations. Through advanced analytics, artificial intelligence, and […]
At the forefront of the significant transformation in lending operations is the automated decisioning stage in loan processing—a technological leap that’s reshaping how banks and financial institutions evaluate and approve loan applications. Automated Decision-Making Systems, or ADMS leverage cutting-edge technologies such as Artificial Intelligence (AI), Machine Learning (ML), and advanced analytics to streamline the loan […]
At present, the ease of the application and loan disbursal process has nudged more Micro Small, and Medium Enterprises (MSME) and retail customers to apply for unsecured loans. For example, the government’s PSB Loans in 59 Minutes initiative accelerates the online application and approval process. On top of it, unsecured business loans up to Rs. […]
Micro, small, and medium enterprises (MSMEs) account for around 30% of the economy, making them one of the most important sectors in India. These businesses also play an important role in safeguarding the cultural heritage of different communities, driving innovation, and generating jobs. With more than 600 lakh MSMEs spread across the country, cash flow […]
Automation has positively impacted industries and has significantly contributed to the growth in the financial services domain. Lenders benefit from automating the entire lending process, including debt recovery. Replacing manual processes with automated collection procedures improves efficiency and helps lenders stay profitable. As per reports, Gross Non-Performing Assets (GNPAs) of Scheduled Commercial Banks (SCBs) reduced […]
One of the top risks in lending is the inability of borrowers to repay loans on time and in full. Hence, debt recovery is one of the most important aspects of the lending life cycle. However, traditional debt recovery methods tend to be more reactive. For example, lenders may outsource this role to external agencies, […]
With over 9,000 registered lending fintechs, India has the third-largest fintech ecosystem worldwide. The notable rise in fintech companies can be attributed to several factors including high internet penetration, incompetent banks and financial institutions, evolving consumer behaviour, and favourable regulatory policies. Additionally, India’s large unbanked or underserved population coupled with a thriving startup ecosystem has […]
