Mahesh Bharadhwaj

NPCI elevates BHIM with Strategic Spin-Off; Lalitha Nataraj takes helm as CEO The National Payments Corporation Of India (NPCI) is taking significant steps to bolster the domestic digital payments ecosystem by spinning off its Bharat Interface for Money (#BHIM) app into a separate subsidiary with a renewed focus on expanding its reach as a payments application. This strategic move is aimed at reducing the concentration risk in the Unified Payments Interface (#UPI) market, currently dominated by foreign players like Walmart-backed PhonePe and Google Pay, which together account for 85% of UPI transactions in India. This decision has received backing from both the government and the Reserve Bank of India (RBI) as both have been pushing to promote the app. Lalitha Nataraj, with previous experience at IDFC FIRST Bank and ICICI Bank, has been appointed as the CEO of the new entity. BHIM’s share in the market remains minimal, with just 22.72 million transactions conducted via the app in June. This accounted for just 0.16 per cent of the overall UPI volumes. Therefore, the NPCI is taking up this decision in an attempt to reduce the reliance on foreign players in the market and strengthen the domestic brand. Notably, BHIM was launched earlier in 2016 by PM Narendra Modi. The app will continue to operate under the NPCI brand, but it will see some operational changes. Once the app becomes a separate entity, it will have individual balance sheets, financial statements, and other structures I wholeheartedly congratulate Lalitha Nataraj on her new role as CEO of BHIM's standalone subsidiary. Her extensive experience and leadership will undoubtedly drive BHIM towards greater heights, reinforcing its pivotal role in India’s digital payments landscape. Ram Rastogi 🇮🇳 Indian Bank Association Reserve Bank Innovation Hub (RBIH) NPCI International Payments Limited (NIPL) Network People Services Technologies Ltd. (NPST- Banking and Payment Solutions) NPCI Bharat BillPay Ltd. Department of Finance Dilip Modi Praveena Rai Dilip Asbe Business Correspondent Federation of India (BCFI)

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In today’s competitive landscape, product knowledge is crucial. We had an enriching experience attending the two-day training workshop in Chandigarh dated 28th& 29th Sept'24, where the SAMCO team provided valuable insights into what sets SAMCO AMC apart and gave an overview of the multicap fund market. Now, we’re excited to announce the launch of SAMCO’s new NFO Multicap Fund. This unique 4-in-1 equity scheme invests 25% each in large-cap, mid-cap, small-cap, and small-cap companies outside the Nifty 500. This diversified approach offers broader exposure across market capitalizations, going beyond the traditional 3-in-1 model, with the goal of driving long-term capital appreciation for investors. NFO Opens: 10th October 2024 NFO Closes: 24th October 2024 Login to our Application- https://lnkd.in/g9nuU9Vj A heartfelt thanks to Mr. Viraj Gandhi (CEO) and Mr. Jimeet Vipul Modi (Associate & Non-Executive Director) of SAMCO Mutual Fund, as well as a special thanks to Mr. Gurpreet Sidana (CEO) of Religare Broking, for giving me the opportunity to attend and gain deeper insights into the market. Gurpreet SidanaViraj GandhiJimeet Modi #MFdistributor #B2B #B2C #financialinclusion #AMFI

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Indian payments ecosystem is possibly a role model for global economies for reapplication! With daily volume of 450 million transactions, UPI is the best scalable platform, tested for the world in India. Few countries have already started using UPI! Do you know what is UPI in India ? How people are transacting now a days in India ? #payments #upi #instantmoneytransfer

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Regulation drives innovation and change is imminent in fintech. But adaptation requires strategy. Here's my take on The RBI's new draft on Payment Aggregators: It is more than just paperwork; it's a catalyst. By mandating KYC norms and requiring authorization for both physical and online non-banking PAs, the RBI is setting a higher standard. What does this mean? 📌 𝗙𝗼𝗿 𝗣𝗔𝘀: Increased operational costs and a steeper path to merchant onboarding might seem daunting. Yes, it may limit the immediate pool of merchants. The new standards necessitate a solid compliance structure. It's a tough pill to swallow, but it ensures a safer transaction environment. 📌 𝗙𝗼𝗿 𝗠𝗲𝗿𝗰𝗵𝗮𝗻𝘁𝘀: Sweet pot of getting regulatory framework protection plus structured grievance redressal mechanism 📌 𝗙𝗼𝗿 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀: This is where the true benefit lies. Enhanced data security, better fraud prevention, and a streamlined grievance mechanism directly contribute to customer confidence and trust in digital transactions. The road ahead will have its challenges. However, the long-term benefits of these regulations will fortify the foundations of our digital economy, making it more robust against the risks that come with rapid growth and innovation. As leaders in fintech, how should we prepare for these changes? 𝗘𝘅𝗽𝗹𝗼𝗿𝗲 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗥𝗕𝗜 𝗱𝗿𝗮𝗳𝘁 𝗵𝗲𝗿𝗲. https://lnkd.in/g3dHXCxr https://lnkd.in/gFwF-mGH 𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘆𝗼𝘂𝗿 𝘁𝗵𝗼𝘂𝗴𝗵𝘁𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗶𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝘁𝗵𝗲𝘀𝗲 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻𝘀 𝗼𝗻 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗳𝗶𝗻𝘁𝗲𝗰𝗵? #dhanasekaran #fintech #belstar #mfitech #paymentaggregators

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UPI's Expanding Role in Cross-Border Payments: A Glimpse into the Future Unified Payments Interface (#UPI) of National Payments Corporation Of India (NPCI)has revolutionized India's payment landscape, and its influence is rapidly extending beyond borders. The recent milestone of UPI-enabled cross-border payments in Nepal crossing 100,000 transactions within six months highlights its growing relevance in the international remittance market. Given the strong economic ties between India and Nepal, where over $7 billion is remitted annually, UPI's integration is a game-changer. It has significantly reduced transaction costs, enhanced speed, and improved access, making cross-border remittances more efficient and inclusive. The impact is evident among migrant workers from Nepal in India, who can now send money home instantly, bypassing traditional cash-based remittance channels. Studies show that UPI has cut transaction costs by up to 80%, enabling quicker access to funds for essential needs, and contributing to the financial stability of families. UPI's global footprint is expanding, with Bhutan, Singapore, and the UAE already integrating UPI into their payment systems. The future roadmap includes forging new partnerships, enhancing interoperability with global payment networks, and further reducing costs. As UPI gains international traction, it promises to make cross-border payments as seamless and efficient as domestic transactions, potentially transforming the global remittance landscape.

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🚨 Big Changes in P2P Lending! 🚨   It’s been almost 2 weeks since the RBI's latest guidelines have shaken up the P2P lending landscape, pushing platforms to rethink their game. The days of credit guarantees and sluggish fund transfers are gone. As the rules tighten, 🏦 transparency and compliance are taking center stage—transforming the way lenders and borrowers interact. I am presenting some important takeaways from the guidelines: 1️⃣ Prohibition of Credit Guarantees:  🛑 Risk completely belongs to the P2P Lenders: NBFC-P2P platforms are now prohibited from offering credit guarantees or enhancements, ensuring P2P lenders bear the full credit risk. This increases transparency and ensures a realistic assessment of borrowers' creditworthiness. 💼 2️⃣ Stricter Fund Transfer Rules: ⏳ T+1 Fund Settlement: P2P platforms must transfer funds from lenders to borrowers and vice versa within one business day (T+1). This reduces delays, making the process more efficient and ensuring quicker loan disbursements and returns for lenders. 💸 3️⃣ Caps on Lending Amounts:   📊 Lending Limits: Lenders are capped at a cumulative lending limit of ₹50 lakh across all P2P platforms. Lenders wishing to lend over ₹10 lakh must provide a net worth certificate confirming a minimum net worth of ₹50 lakh. Borrowers can borrow a maximum of ₹10 lakh across all P2P platforms. 💳 4️⃣ Restrictions on Cross-Selling: 🔒 Focus on Core Lending: P2P platforms can no longer cross-sell products, except for loan-specific insurance. 🚫 5️⃣ Enhanced Transparency Through Disclosures:   📅 Monthly NPA and Portfolio Performance Reporting: P2P platforms must now disclose portfolio performance, including non-performing assets (NPAs) and delinquencies, on a monthly basis. This allows lenders to better assess risks and make more informed decisions. 🧾📊 6️⃣ Revised Fee Structures:   💵 Fixed Fee Structure: P2P platforms can charge fees either as a fixed amount or a fixed percentage of the principal, with fees no longer contingent on loan performance. This makes the fee structure more predictable and fair for both lenders and borrowers. ⚖️ 💡 RBI's Intent Behind Regulations:  The Indian P2P lending market is valued at approximately ₹8,000-10,000 crore, with around 25 active P2P platforms registered as NBFCs with the RBI. With the ever-growing demand for credit in the past 3-4 years, 📈 RBI wants to create a more secure 🔐 and transparent P2P lending environment in India to avoid any future mishaps and safeguard P2P lenders. The updated guidelines aim to promote transparency, accountability, and fairness in the P2P lending space. While these changes may create operational challenges for platforms, they are expected to ensure long-term growth, stability, and trust in the P2P lending ecosystem. 🌱🛡️ Will post next on the mitigation strategy. Let me know your thoughts/strategies on the new P2P Lending Guidelines in the comments.💬

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The RBI Annual Report 2022-23 highlights significant advancements in India's digital payment systems and IT resilience. Key points include a surge in UPI transactions, growth in NEFT and RTGS volumes, increased credit card usage, and the rise of prepaid payment instruments. The report also notes the expansion of PoS terminals and UPI QR codes, the introduction of the Lightweight Payment and Settlement System for operational continuity during emergencies, and ongoing CBDC pilot projects. These efforts underscore the RBI's commitment to modernizing financial systems and ensuring robust infrastructure against potential disruptions.

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Honestly things are evolving too fast in the world of genAI. New LLMs, efficient RAG architectures, new applications across verticals, new modalities of data, there is a lot going on for any one person to stay on top of advances in AI. We are thrilled to start a podcast specifically to hear from industry experts on how they are leveraging AI and in the process I also get to learn and stay on top of things 😁 Super excited to share my first conversation with Ashwin Iyer SVP, Head of Data Science and GenAI at Citi. It is our first short podcast packed with the following key insights, tune in to learn more! 📊 Data Transformation: The shift from traditional structured data models to leveraging unstructured data is crucial for deriving deeper insights and enhancing decision-making in BFSI. 📈 Customer-Centric AI: AI’s evolution in BFSI focuses on improving customer acquisition and retention through advanced analytics, significantly impacting revenue growth. 🤖 Generative AI Potential: Generative AI is being adopted for various use cases, one of the leading use case is automating customer service, which leads to reduced operational costs and improved customer satisfaction. 🛡️ Regulatory Compliance: The BFSI sector must navigate complex regulatory landscapes, making compliance a primary focus when implementing AI solutions to minimize risks. 👥 Talent Development: Upskilling existing talent and hiring new professionals with expertise in AI and machine learning is essential for organizations to stay competitive in the evolving landscape. ⚖️ Fairness and Bias: Ensuring fairness and reducing bias in AI models is critical, as compliance with emerging regulations will dictate the successful deployment of AI in BFSI. 🌍 Strategic Insights: Businesses can leverage unstructured data from various sources to identify investment trends and recommend personalized financial products to customers, enhancing their overall experience. Thanks Ashwin for spending time walking us through different considerations one needs to have while adopting AI in the world of BFSI. Our next podcast will dive deep into how AI is disrupting contact centre business. Stay tuned!

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India's Unified Payments Interface (UPI) continues its meteoric rise, reshaping the nation's digital economy. Recent data showcases its staggering growth: over 3.5 billion transactions in April 2024, valued at ₹10 trillion. With over 280 million UPI users, its impact is undeniable, fostering financial inclusion and efficiency. As UPI evolves, embracing new technologies and partnerships, its potential remains boundless. This digital revolution not only propels India towards a cashless future but also serves as a global benchmark for inclusive, accessible financial systems. #DigitalIndia #UPIRevolution #FinTech #DigitalPayments #NPCI #UPI

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What is India's superpower in embedded lending? And why is the US still the best market for it? I spoke with Ankit Singh, the cofounder of Vaya Technologies, for the latest edition of the Embedded Finance Review podcast. Ankit was instrumental in setting up #OCEN in India as part of the volunteering organisation ProductNation/iSPIRT. OCEN is part of #IndiaStack. It is a framework that enables marketplaces, platforms, and digital brands to offer lending products. With one integration, these players can embed lending products from various banks and alternative lenders. After that, Ankit decided to use his knowledge to build an embedded lending infrastructure provider. But he decided to leave India and founded Vaya in the US. Why? And what kind of companies does he believe are best positioned to launch an embedded finance product? You can find the episode on your preferred podcast app. The links for Spotify and Apple Podcasts are in the comments. Whom should interview next?

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CXO Chickens :: These Opportunists are opposite of what Leadership means and should be. Of late many CXOs have left PayTm and its associated firms. This is coming when the company is battling a crisis - of regulatory and customer confidence. I've been a loyal PayTm user all this while and yes, even my own confidence is shaken, but not evaporated yet. I believe they did wrong, but so do I believe that they deserve another chance too. Also, I love and respect Vijay Shekhar Sharma. But what about these chaps? They onboard a ship, supposed to be leading it when the going is good and its party time all around. They eject the moment there is real crisis to be handled. Do you think these guys deserve to be given another shot at any CXO position? Frankly, I dont. Someone may argue, that they may be leaving because they may have unearthed somethings not right inside. Then again, its hard to believe that they didn't know it before when the party was at full bloom. And if they really didn't know and were CXOs then they either aren't worthy of being CXOs or should come out and clarify themselves. Just leaving when the enforcement guys come knocking at a party, is chicken-ing out, demonstrating spineless character. I wouldn't hire any of them in my company and I think no founder would or should? (Of course, until I have heard them and discover another truth).

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G20 set ambitious goals toward enhancing cross-border payments and countries worldwide have been making steady progress. In South Asia, we've seen remarkable strides, particularly in India, where digitisation and the introduction of  the India Stack and Bharat Connect led efforts have propelled the domestic digital payments landscape. Pleased to share that I will be speaking on this at the upcoming #SIBOS 2024 in Beijing. My fellow panelists Mashrur Arefin, Shashi Kandambi, Sanjay Mudaliar, and Kiran Shetty and I will be taking stock of the progress made by the global industry in cross-border payments - Retail and Corporate - with a specific focus on South Asia.   Our discussion will align with the G20's roadmap for enhancing speed, improving accuracy and transparency and harmonising standards and regulations for future ready cross border payments. We will also delve into the evolving global business models that foster collaboration and innovation in this space, and highlight the crucial regulatory advocacy efforts needed to promote financial inclusion, particularly in South Asia. The role of regulations in accelerating these advancements, while working towards creating a more inclusive financial landscape cannot be understated.  Looking forward to connecting and exchanging insights with banking and business leaders from around the world!  #Finance #B2B #Innovation #Business #FinancialInclusion #CrossborderPayments #Innovation #leadership #G20 #B2C #leadership #agility

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"Acceptance" and "acquiring" in digital payments aren’t the same. Think of acceptance as a big umbrella covering everything, while acquiring is just one part underneath it. → Acquiring mainly deals with card transactions. When you acquire a transaction, it's like asking the bank if the person has enough money, and if they do, you take it from them. → Acceptance, on the other hand, is broader. It includes not just card transactions, but also accepting cash, checks, or even payments directly into your account. People often mix up these terms, thinking they're interchangeable. They're not. Acquiring is just a piece of the acceptance puzzle, specifically focused on card transactions. So, remember, everything you accept falls under acceptance, but acquiring is just one way to do it, specifically with cards. Did you know this difference?

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RBI allows SFBs to offer Pre-sanctioned Credit lines via UPI ! This is how RBI is changing the game👇 Imagine a world where your banking history and digital payments unlocks access to instant loans—no lengthy applications, no endless paperwork, and no waiting. This isn’t just a dream anymore. With the RBI’s groundbreaking decision to allow Small Finance Banks (SFBs) to offer pre-sanctioned credit lines through UPI, the way unorganised or small scale business sector access loans is about to change forever. 💳 What Are Pre-Sanctioned Limits? Think of them as your pre-approved ticket to financial freedom, based on: ✅ Your average banking behavior ✅ CIBIL score and existing credit track records Why This Is a Big Deal: ●      Fastest Way to Small Loans ●      Universal Loan Options ●      Empowers Borrowers ●      Hassle-Free Execution: 🚀 A Leap Forward for Financial Inclusion For many, traditional loan systems are out of reach due to lack of documentation. By integrating pre-sanctioned loans with UPI—a platform trusted and used nationwide—the RBI is democratizing credit access: ✅ Access for All: Even underserved communities can now enjoy formal credit. ✅ Boost to Entrepreneurs: Micro and small businesses gain immediate funding to grow and thrive. ✅ Cost-Effective: With tech-led efficiency, banks can lower lending costs, making credit more affordable. 📈 Why It Matters: UPI isn’t just for payments anymore—it’s a gateway to financial upliftment. Small Finance Banks, with their grassroots reach, are perfectly positioned to bring formal credit to areas where it’s needed most. 💭 Imagine this scenario: A shop owner in a rural town uses UPI every day for transactions. Now, they can also tap into a pre-approved credit line, expand their business, and improve their livelihood—all with the same platform. This isn’t just a policy shift—it’s economic upliftment in action 💬 How do you see this impacting India’s credit ecosystem? Let’s discuss!

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Our new and enhanced version of CreditVision NTC score is here! This machine learning model is built on the unique concept of “look-alike” clusters. NTC score will enable lenders objectively assess credit worthiness of consumers seeking loan for the first time, and expand their customer base without compromising on risk. Key Features: 1. Score ranging from 101 to 200, where lower score signifies high credit risk. 2. Finer segmentation that covers all products and industries. 3. Separate segments for agricultural products and short-term loans. 4. Simple and easy to consume solution that can be integrated via all channels. Click here to know more: http://transu.co/6046cI5gm #financialinclusion #retaillending

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Thanks for sharing Avnish. I feel that in addition to boosting funds in AI research, it's important to promote the Industry - Academia collaboration which would foster stronger partnerships between research institutions and private companies to bridge the gap between theoretical advancements and practical applications. Not to forget the fact that we would also need to have a robust regulatory framework and ethical considerations in place to develop clear AI guidelines and develop LLMs that are transparent and explainable. #LLMs #AI #GenAI

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🤦‍♂️. App downloads ≠ monthly active users (#MAU) And: MAUs ≠ transactional accounts with salary mandates / regular income (ie profitable) I think I have 10+ payment / banking apps installed on my phone that I haven’t clicked on this year, let alone this month… https://lnkd.in/dZBEcqws #champion #challenger #neobanks #fintech #payments

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🌐Benchmarking Success: Comparative Insights into Digital Banking Performance in 2024 As the digital banking landscape evolves, major players like Nubank, Revolut, Monzo Bank, and Starling Bank continue to adapt and innovate. C-Innovation's latest blog by Linda Souak dives deep into their performances, shedding light on key indicators and strategic insights. 📈 Key Performance Insights: ● Nubank astounds with a remarkable financial turnaround, posting $1,030m in profits and an impressive revenue surge to $8,028m, demonstrating effective cost management and aggressive market penetration. ● Revolut transitions from red to black, achieving profitability in 2021 with smart diversification and technological advancements, expecting to boost revenue to $1,875 million for 2023. ● Monzo's growth and market expansion have been steady, but profitability has been elusive. However, with last year's achievement of monthly profitability, there's optimism about maintaining this trend in the 2024 financial statements. Monzo aims for this year to signal a clear path to sustained profitability. ● Starling Bank showcases a sustainable growth model with a profit of $179m, supported by strong customer deposits and a focus on both retail and business sectors. 📊 Market Valuations and Customer Engagement: ● Nubank leads with a market cap of $51.8 B and a customer base of 95 million, demonstrating a high ARPU of $84.5. ● Revolut has the lowest ARPU at $30.3, potentially reflecting its previous strategy of attracting a high volume of users with low-cost services, while it holds a significant valuation of $25.7B, as last week emerged that Schroders Capital Global Innovation Trust has revalued its stake in Revolut upward by 45%, underscoring its solid market positioning and the optimism surrounding its financial trajectory ● On its side, Starling is in a phase of stabilization following the departure of its CEO in June 2023. With Raman Bhatia now at the forefront as the new CEO, the challenge lies in maintaining the strong performance figures the bank has shown, including robust growth in deposits and customer engagement, along with impressive ARPU statistics. 🔍 The Rising Trajectory of Digital Banks: Digital banks' sustained growth and effective operations showcase their financial solidity and strategic savvy. Their skill in customer retention, revenue generation, and regulatory navigation strengthens their market valuations and competitive stance. Today's trends indicate these institutions are not merely surviving; they're thriving, evolving, and innovating for today's financial consumer. 💡 Dive into the full analysis to understand how these digital banks are setting the benchmarks for success. https://lnkd.in/e_Ku9aE2 #cinnovation #financialservices #banques #banca #bankingindustry #fintechs #businessmodels #digitalbanking #banking #strategy #openbanking

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𝐓𝐡𝐞 𝐄𝐦𝐛𝐞𝐝𝐝𝐞𝐝 𝐋𝐞𝐧𝐝𝐢𝐧𝐠 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 via Visa X PYMNTS 💳 Embedded lending is redefining access to credit in India—bridging the gap where traditional banking often falls short. According to Visa’s latest report in collaboration with PYMNTS Intelligence, embedded lending has gained remarkable traction among India’s microbusinesses and small businesses (MSBs) and continues to make waves among consumers. 🗝️ Key insights: 1️⃣ MSBs Are Leading the Charge ↳ 37% of MSBs in India used embedded lending in the past year, the highest among six countries surveyed. ↳ Small businesses (₹46M–₹832M revenue) showcase even higher adoption rates at 52%, driven by the rapid proliferation of smartphones and digital platforms in underbanked areas. 2️⃣ Consumers Show Strong Interest ↳ Two-thirds (66%) of consumers expressed a high likelihood of switching to providers offering embedded lending. ↳ Generation X and Z are emerging as key demographics, with usage rates of 20% and 18%, respectively. 3️⃣ Pain Points Are an Opportunity ↳ A staggering 97% of consumers and 95% of MSBs in India reported challenges, with issues like irrelevant offers (73%) and cumbersome application processes (65%). ↳ These frictions offer an opportunity for providers to stand out by simplifying and personalizing their offerings. 4️⃣ Lenders See Growth Potential ↳ Over 40% of lenders in India are highly interested in launching embedded lending products, with risk management and technology integration identified as critical hurdles. _________________ Dive deeper into this transformative trend—click the link to access the full report and discover how businesses can capitalize on India’s growing embedded lending ecosystem here ➡️: https://lnkd.in/gudUv5xh #fintech #embeddedfinance #embeddedlending #SMEfinance #India

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