Fintech companies can bring efficient onboarding of customers and offer seamless collection support at a negligible cost at the last mile touchpoints, stated Mr. Ketan Doshi, Managing Director of PayPoint India, at the recently held 8th ASSOCHAM National E-Summit on the NBFC sector.
Speaking at the event, Mr. Ketan Doshi said, “NBFCs are going to be the forefront of the credit outreach which is required in the country, and this can happen with the partnership model with Fintech. It can bring credit revolution in the country.”
“Pandemic has facilitated banks and NBFCs to join hands with Fintechs. Lenders are now looking for fintech partnerships serving the last mile mainly for customer onboarding as customer acquisition and collection costs are pretty high. With the help of NBFCs decision-making tools along with Fintech’s payment tools, credit can be disbursed within 5 mins, and the costs can also be bought down by around 65%.” Mr. Doshi added.
While most people cannot come to the mainstream because of the scarcity of capital, credit should also be made available to the underserved for the economy to grow. If the last mile is touched via the partnership model, there is considerable headroom for credit growth and greater financial inclusion. Also, government initiatives like OCEN (Open Credit Enablement Network) and Account aggregation can change the entire lending landscape in the coming year.
At the summit, the panelists also underlined that NBFCs have deeper penetration in rural markets and have played a significant role in the financial inclusion agenda. Today, NBFCs’ partnership with fintech companies is leading the way to the future of financial services. This partnership model is developed fundamentally to serve underserved customers who otherwise find it hard to access credit.
The summit also deliberated upon the outlook of Overall NBFCs & MFIs Sector, Deep-Dive into the Infrastructure and Housing Finance. Other Industry stalwarts such as Shri Alexander Muthoot – MD of The Muthoot Group, Shri Amit Gainda- MD & CEO of Avanse Financial Services Ltd., Shri Amit Gupta – CFO of U GRO Capital, Shri Sanjay Rudra – General Manager, Large & Mid Corporate of Bank of Maharashtra, Shri Samik Dasgupta – General Manager, and HOD NPA Management and Legal of IIFCL, Shri Ashok Soni – ED, of PFRDA, Dr. M. Narendra – Former CMD of Indian Overseas Bank also addressed the discussions.