Timmana Gouda D’s Post

OCEN, 2020, ONDC for BFSI 2023, PTPFC by RBI Innovation HUB 2023 , ULI by RBI innovated by RBI Innovation HUB in 2024 , DPI/‘Digital rails are great access to public and public permissoned data like land records and crop data , fintechs like WhatsLoan, banks like Union Bank have worked on this from 2020 from The time Digital Kisan Credit Card Guidelines kicked in Sept 2022 at GFF 2022 announced by RBI Governor was launch of Digital KCC pilot by 2 banks .. WhatsLoan has built this for agrilending for Gramin Bank in Karnataka in 2020, successfully sevicing > 3 lac farmers , launched Digital KCC STP in 2022 Sept using PTP FC , land record access APIs given by RBI Innovation HUB for Union Bank and other banks .. ULI , OCEN , ONDC for BFSI offer huge opportunities for fintechs to build , as they offer common digital rails, there is more to do by fintechs to work between borrowers and banks , that is 10 times effort to work with banks existing LMS, CBS systems to make it more intergrated lending system to offer end to end digital native systems with STP in an assisted and self model, both OTP based and biometric based at branch and BC level , in multilingual formats super easy few steps and less than 5 minutes delivery of loans esp agri loans which is super hard , as each state is country in India We have submitted proposal through FCC to RBI for future of gold lending , dematerising gold , making storage of gold for ownership or loans interoperable with common storage , allow billion and gold coins to be allowed for loans along with e gold , tokenisation helps it next level , this brings SEBI for custody and RBI for lending to work together , happy to exchange thoughts here !!

I came across this post because a bunch of mutuals reacted to it. Respectfully, the FLDG Guidelines are premised on the fact that the asset(s) is booked and accounted for, at the RE's end. As much is also clear from the fact that FLDG structure creates identical payoffs to a synthetic securitization that we know of in structured finance where the asset stays in the books of protection buyer ( in here the RE) and only the risk passes to the protection seller ( in here the LSP Fintech). So, while the "NPA" recognition happens at RE end (as the quoted post also points out), *note that at the LSP Fintech end, it's a contractual liability simpliciter that will flow through its P & L when triggered*. As a corollary, the loss recognition and NPA conundrums at the fintech end that our friend worries about in the underlying post, are not germane here. To complete the story for the sake of good order, since the LSP's exposure on the "put option" it has written in favor of the RE is capped at 5 % of the "specified portfolio", the aforementioned liability it will potentially incur on this contingent obligation is clear and capped. If we understand the nature of the underlying relationship a First Loss Default Guaranty creates, the accounting treatment ( and the "why" thereof) will be manifest in sharper relief. Here's a quick set of bullet points that is self- explanatory- -LSP: Put writer ( that stands ready to honor the put to the extent of the exposure). -RE: Put- owner that has swapped the credit risk of the portfolio ( to the limit prescribed) for the counterparty risk on the LSP. -Under the scheme of the FLDG , RBI requires the exposure to be "covered" ( through upfront FD / BG for eg ) -When the "trigger event" happens, the LSP incurs a liability (that it pays for through the FD / BG). In closure, as a side-bar, I can't help observing that the FAQs are another exhibit in confused guidance. I gotta book now, but I look forward to sharing my thoughts as to why, soon-

𝐀𝐝𝐚𝐧𝐢 𝐎𝐧𝐞'𝐬 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐦𝐨𝐯𝐞 𝐢𝐧𝐭𝐨 𝐭𝐡𝐞 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 𝐥𝐞𝐧𝐝𝐢𝐧𝐠 𝐬𝐩𝐚𝐜𝐞, 𝐰𝐡𝐢𝐜𝐡 𝐡𝐚𝐬 𝐭𝐡𝐞 𝐩𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐭𝐨 𝐢𝐦𝐩𝐚𝐜𝐭 𝐬𝐭𝐚𝐫𝐭𝐮𝐩𝐬 𝐚𝐧𝐝 𝐞𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫𝐬 𝐬𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭𝐥𝐲. Since its launch in December 2022, Adani One has rapidly expanded its offerings and user base. This ambitious super app, developed by the Adani Group, already provides a range of services, including cab and flight bookings, and a loyalty program akin to Tata Neu. Now, Adani One is venturing into the digital lending space, positioning itself as a go-to platform for various consumer needs. Adani One has initiated pilot projects with digital lending firms and non-banking financial companies (NBFCs) to offer loans through its platform. Operated by Adani Digital Labs Ltd, a branch of Adani Enterprises Limited, the company has partnered with KrazyBee Services, the NBFC arm of KreditBee, to provide personal loans ranging from Rs 1,000 to Rs 5 lakh. Adani One will act as a lending service provider (LSP), facilitating loans through KrazyBee’s resources. This partnership marks a significant step in Adani One's journey, expanding its financial services offerings beyond its initial focus areas. This move positions Adani One against other major conglomerates like Tata Group, which has been refining its super app, Neu. KreditBee’s involvement with both Adani One and Tata Neu highlights the competitive nature of the digital lending space. With loan amounts ranging from Rs 1,000 to Rs 5 lakh, startups can choose the right loan size to meet their specific needs, whether for working capital, expansion, or emergency funds. Startups often face cash flow challenges, especially in their early stages. Access to quick and flexible loans through Adani One can help them manage these challenges effectively, ensuring they have the necessary funds to pay salaries, purchase inventory, and invest in growth opportunities. The integration of digital lending into Adani One's super app is a game-changer for startups and entrepreneurs. Super apps, by combining a variety of services under one platform, offer a seamless user experience and significant convenience. This integration allows users to manage multiple aspects of their financial and daily needs without switching between different apps. In FinTech, super apps are transforming the industry by consolidating services, offering everything from travel bookings to financial products, thus simplifying user experience and boosting engagement. They enhance financial inclusion by providing digital lending to underserved populations, including small businesses and startups. By leveraging user data, super apps deliver personalized financial solutions, increasing customer satisfaction and loyalty. Additionally, the competitive landscape of super apps drives continuous innovation, introducing new features and services to the market. What’s your thoughts? Adani One Adani Group GenZCFO ®

Paisabazaar Building Offline Distribution To Fuel Lending Play Expansion into Secured Lending: Paisabazaar, owned by PB Fintech, is focusing on doubling its secured lending portfolio by building an offline distribution channel in key cities like Delhi, Mumbai, and Bengaluru. Field Team Growth: The company has deployed a field team of 100 people, aiming to grow it to 500 by the end of the fiscal year, focusing on secured products like home loans and loans against property. Product Expansion: Beta testing is underway for secured credit products such as loans against cars and securities to strengthen its offering in this space. Strategic Shift: Paisabazaar plans to increase the share of secured credit to 50% from the current 15%, responding to market trends and regulatory changes by the RBI on unsecured lending. Regulatory Compliance: Amid tightening KYC norms and Reserve Bank of India (RBI)’s increased risk weighting on unsecured loans, Paisabazaar is adapting its strategy to balance secured and unsecured lending. Read More: https://lnkd.in/gaQh_ZDt

Digital lending has been mostly synonymous with unsecured consumer credit. The scenario is slowly changing with more traditional lenders opening up to work with the fintechs. Discover how MSME fintechs steal the spotlight while consumer lending takes a backseat. Dive into the details now - https://lnkd.in/dEPd-uAK #Technologyyoucanbankon #MSME #Fintech #EconomicTimes #IndustryInsights #FinanceTrends

Online lending platforms have significantly transformed the banking industry by introducing new ways of accessing capital, streamlining the loan application process, and catering to underserved segments of the market. Here are some key ways in which online lending platforms have reshaped the banking landscape: 1. #Increased_Accessibility: Online lending platforms have democratized access to capital by providing loans to individuals and businesses that may have been overlooked or underserved by traditional banks. 2. #Speed_and_Efficiency: Online lending platforms offer a faster and more streamlined loan application process compared to traditional banks. Borrowers can apply for loans online, upload required documentation digitally, and receive funding within days or even hours in some cases. 3. #Lower_Operating_Costs: By leveraging technology and automation, online lending platforms have lower operating costs compared to traditional banks with extensive branch networks and legacy systems. This enables them to offer competitive interest rates and fees to borrowers while maintaining profitability. 4. #Data_Driven_Decision_Making: Online lending platforms use advanced algorithms and data analytics to assess credit risk and make lending decisions. By analyzing vast amounts of data, including financial history, transactional data, and behavioral patterns, these platforms can more accurately predict creditworthiness and tailor loan offers to individual borrowers. 5. #Diverse_Loan_Products: Online lending platforms offer a wide range of loan products tailored to the needs of different borrowers, including personal loans, business loans, student loans, and peer-to-peer lending options. 6. #Marketplace_Lending: Some online lending platforms operate as marketplaces, connecting borrowers directly with investors willing to fund loans. This peer-to-peer lending model bypasses traditional financial intermediaries, allowing investors to earn returns by funding loans directly and borrowers to access capital at competitive rates. 7. #Innovation_and_Disruption: Online lending platforms have spurred innovation and disruption in the banking industry, forcing traditional banks to adapt and modernize their lending practices. 8. #Financial_Inclusion: Online lending platforms have played a crucial role in promoting financial inclusion by extending credit to underserved populations, including individuals with limited credit history, small businesses in rural areas, and minority-owned enterprises. #venturecapital #venturecapital #capitalventurecapital #venturecapitalcapital #startups #startupstartup #startupstart #jointventure #angelinvestors #investmentfunding #businessloanforstartupcompany Finvento Economics Nidhi Mishra

Digitization of Lending: The Future of Credit in IndiaIndia's lending industry is at the forefront of a digital revolution, reshaping how individuals and businesses access credit. Here’s a closer look at how digital transformation is shaping the future of lending in India:1. Instant Loan Approvals & Enhanced Customer Experience   - AI and Machine Learning (ML) Power: With the integration of AI and ML, loan approvals that once took days or even weeks are now reduced to just a few hours. Data from Experian indicates that over 50% of loan applications in India are now processed digitally.   - Reduced Documentation: E-KYC and digital signatures eliminate cumbersome paperwork, improving customer experience by over 40%, as reported by Deloitte.   - 24/7 Access: With apps and digital platforms, lenders are available anytime, offering flexible loan options, pushing customer satisfaction up by 25%, according to a PwC survey.2. Financial Inclusion: Reaching the Unbanked   - India’s Untapped Potential: There are still over 190 million adults in India without access to formal credit. Fintechs, through digital platforms, are now offering micro-loans and credit facilities to rural and underserved areas.   - UPI and Aadhaar: India’s UPI and Aadhaar ecosystems have paved the way for seamless loan disbursements. For instance, Jan Dhan Yojana accounts now serve over 430 million people, many of whom have gained first-time access to credit.   - BNPL (Buy Now, Pay Later) Growth: The BNPL sector in India is expected to grow at a CAGR of 45% between 2021 and 2028, driven by the younger, digitally-savvy population.3. Rise of Fintech & New Credit Models   - Fintech Explosion: India is home to over 2,000 fintech startups, with digital lending set to touch $1.3 trillion by 2030, according to a report by Boston Consulting Group.   - Blockchain & Secure Lending: Blockchain technology is increasing the transparency and security of digital loans, reducing fraud rates by up to 30%, as per KPMG. Smart contracts are now enabling automatic disbursements, streamlining the entire lending process.   - Big Data & Alternative Credit Scoring: Lenders are using alternative data—such as utility payments, social media activity, and digital transaction history—to assess creditworthiness. This has opened the door for millions who lacked traditional credit scores to access loans.Is your business ready to ride the wave? Let’s talk!

🚨 Salesforce gets into Lending and has introduced its 'Made In India' product, aimed at revolutionizing the consumer lending landscape for banks & lenders.  Here are the key highlights: Salesforce announced the upcoming availability of Digital Lending for India that will provide banks and lenders with a platform to digitally approach consumer lending, while reducing the cost and burden to maintain disconnected, outdated platforms. Digital Lending for India will exclusively serve customers within the country. The platform may be integrated with banking and financial data with customer data with Salesforce. Built on Salesforce’s Financial Services Cloud platform, this integration provides a single view of the customer information for loan application processing and helps lead to faster processing and approvals. Digital Lending for India provides a unified platform for intake, underwriter review, and pre-disbursement operations for applications for home, auto, and personal loans. Salesforce’s preconfigured and configurable solutions to ensure faster time-to-value and reduction in loan processing time. More info: https://lnkd.in/e8BBWq3v Arundhati Bhattacharya, CEO & Chairperson, Salesforce India, said; “Given the potential of technology in driving change, our new product “Digital Lending for India” can offer multiple benefits. India, with its rich scientific heritage, and diversity, with strong aspirations for a technology-driven economy, finds itself at a juncture, facing both challenges and opportunities in this global technological race. I am truly excited to be launching this product, a first, where we’re solving for the unique complexities in India and made for Indian businesses. As we grow our presence in the region, we are confident that Salesforce will be at the forefront of driving innovation at scale for businesses across sectors in India.” 

𝐑𝐞𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐢𝐳𝐢𝐧𝐠 𝐒𝐞𝐜𝐮𝐫𝐞𝐝 𝐂𝐫𝐞𝐝𝐢𝐭: 𝐅𝐢𝐧𝐭𝐞𝐜𝐡𝐬 𝐚𝐧𝐝 𝐍𝐁𝐅𝐂𝐬 𝐉𝐨𝐢𝐧 𝐅𝐨𝐫𝐜𝐞𝐬 The fintech world is buzzing and for a good reason. A 𝐧𝐞𝐰 𝐭𝐫𝐞𝐧𝐝 is emerging that's set to revolutionize how we think about loans and credit. Imagine this: you're using your favorite app to pay bills or shop online, and now, you can also get a secured loan with just a few taps. Sounds too good to be true? Well, it's happening. 𝐖𝐡𝐚𝐭’𝐬 𝐭𝐡𝐞 𝐁𝐮𝐳𝐳 𝐀𝐛𝐨𝐮𝐭? 𝐅𝐢𝐧𝐭𝐞𝐜𝐡 𝐠𝐢𝐚𝐧𝐭𝐬, known for their seamless unsecured loans, are now 𝐩𝐚𝐫𝐭𝐧𝐞𝐫𝐢𝐧𝐠 𝐰𝐢𝐭𝐡 𝐍𝐁𝐅𝐂𝐬 𝐭𝐨 𝐨𝐟𝐟𝐞𝐫 𝐬𝐞𝐜𝐮𝐫𝐞𝐝 𝐥𝐨𝐚𝐧𝐬. This means larger, 𝐚𝐬𝐬𝐞𝐭-𝐛𝐚𝐜𝐤𝐞𝐝 𝐥𝐨𝐚𝐧𝐬 like home loans, loans against property, and vehicle loans are now just a few taps away. 𝐖𝐡𝐲 𝐓𝐡𝐢𝐬 𝐌𝐚𝐭𝐭𝐞𝐫𝐬 𝐆𝐫𝐞𝐚𝐭𝐞𝐫 𝐀𝐜𝐜𝐞𝐬𝐬 𝐭𝐨 𝐂𝐫𝐞𝐝𝐢𝐭: Fintechs make it easier to get secured loans, bypassing traditional bank hassles. 𝐂𝐨𝐧𝐯𝐞𝐧𝐢𝐞𝐧𝐜𝐞: Everything is online, eliminating piles of paperwork and endless bank visits. 𝐁𝐫𝐨𝐚𝐝𝐞𝐫 𝐑𝐞𝐚𝐜𝐡: NBFCs tap into fintechs’ extensive user base, reaching more potential customers. 𝐇𝐨𝐰 𝐈𝐭 𝐖𝐨𝐫𝐤𝐬 Fintechs act as lead generators, passing potential borrowers to NBFCs who handle the loan processing. For instance, well-known fintech platforms have partnered with established financial institutions to offer various secured loans. While fintechs aren’t yet involved in complex loan processes, this partnership simplifies borrowing for consumers. The potential is enormous. Imagine getting pre-approved for a home loan while checking your account balance. This trend is still early stage, but as it evolves, we can expect even more innovative solutions making secured loans more accessible and convenient. 𝐍𝐚𝐯𝐢𝐠𝐚𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐂𝐨𝐦𝐩𝐥𝐞𝐱𝐢𝐭𝐢𝐞𝐬 While the opportunities in fintech-NBFC partnerships are exciting, the journey involves significant complexities in areas like technology integration, data security, regulatory adherence, customer data privacy, partnership sustainability and implementation, risk management, scalability, operational efficiency, and compliance. These challenges require a nuanced approach and deep expertise. This is where The Digital Fifth can make a difference, offering guidance and support to help you navigate these challenges effectively, ensuring your venture is both innovative and compliant. Get in touch: www.thedigitalfifth.com Let us know your thoughts in the comments! Sameer Singh Jaini | Shashank Shekhar | Sreekant Rudrabhatla | Deepak Sai | Vikrant Kulkarni #Fintech #NBFC #DigitalFinance #SecuredLoans #TechInnovation #Partnerships #RiskManagement #Compliance #TheDigitalFifth #FinancialServices #DigitalTransformation #Innovation #FintechTrends