• Home
  • Contact
FICCI blog
  • Home
  • Contact
Home  /  Domestic Economy  /  Emerging New Trends / Technologies in the Online Lending Space

Emerging New Trends / Technologies in the Online Lending Space

Written by
Domestic Economy e-commerce, financial foresights, fintech, online lending Comments are off
Share this..
Twitter0
Facebook0
LinkedIn0

For the past six years, most online disruption that has taken space is in the e-commerce & e-classified space. However, 2017 will mark the year of FinTech and online lending ecosystem innovation. We will see tech start-ups disrupting the traditional banking ecosystem. The ecosystem is aiming to improve both consumer credit side and SME credit pain points where traditional banks and financial institutions have left many pockets unattended for the FinTech players to disrupt and provide technology layered lending products. Some of the key trends in online lending ecosystem in India are:

Taking of the C out of the Cash on Delivery (CoD)

One of the biggest factors to the e-commerce growth story in India has been Cash-On-Delivery with nearly 60% of all transactions today being COD. From this, around 60% result in return/cancellation on delivery, causing the biggest pain point in the e-commerce growth story today. To solve this problem, many FinTech players are entering into this place to build concepts like Pay Later, Credit on Check-Out etc. basis credit check and small unsecured loans which offer similar services like BillMeLater from PayPal and PayLater by Wonga from the West.

60% of all Cash-on-Delivery products are returned is a pain point for the eCommerce industry

FinTech players will disrupt consumer durable credit market

Bajaj Finance & Capital First has dominated the consumer durable finance category for nearly seven years now and FinTech players are entering this space to disrupt this market. From offering EMI options to students to credit without a credit card, building complex machine learning credit scoring and social profiling systems to lend faster, the new age FinTech players will disrupt the current consumer durable credit market considerably.

This article is a part of the January edition of FICCI’s financial Foresights that focuses on ‘Leveraging the FinTech Opportunities in India’ and presents interesting propositions in the form of insightful write-ups contributed by both established and emerging players from the FinTech industry.

More articles from this series can be viewed here at: Financial Foresights

We’re organising Picup Fintech around this theme. Join us.

Instant cash advance / loans

Traditionally banks offer over draft facilities; a few companies offer salaried loans to employees. Players like EarlySalary are disrupting this market by offering instant cash loans on a mobile app to salaried individuals for tenures less than one month.

Disrupting the credit score driven by Credit Bureaus

Traditionally, CIBIL score is what you need to get any form of credit. But this is very age bias and relies on banks and other institutions submitting their portfolio data to financial bureaus. Today many new FinTech start-ups are either focusing on building a new credit score using multiple data sourcing combing credit bureau reports to social media profile of the user to make their decision faster and more accurate.

Financier disruption with Peer to Peer (P2P) model

P2P model is changing the landscape of capital provider for lending. Traditionally banks and NBFCs borrowed to lend to others, and customer had to approach these institutions to borrow. Peer to Peer platforms act as catalyst for anyone to become a lender and offering his cash as credit to anyone in need of credit. These platforms act as big catalyst for growing the lending space. SME finance and working capital funding has got mass acceptance in a very early stage already and many FinTech players are operating in this market already.

Akshay Mehrotra, Co-Founder & CEO, EarlySalary writes for our publication: Financial Foresights. EarlySalary is a short term lending platform which gives cash loans to working individuals via a mobile app.

 Previous Article The Evolving FinTech Landscape in India
Next Article   The Path to Ultimate Fintech Offering

Related Posts

  • IPL for MSMEs – Innovative Policies & Lending

  • Future of Jobs in Finance

  • Insurance Jobs of the Future

  • Popular Posts
  • Recent Posts
  • Direct Selling – An Avant-garde Model
  • A Billion+ Customers need a Million Sales and Service Touch Points
  • Changing Times for Mining and Steel Sector in India Post COVID 19
  • Insurance Jobs of the Future
  • Massive potential for farmers, consumer by strengthening millet value chain; Let’s strive to put ‘Millets on every plate’
  • Energizing travel towards a sustainable future
  • Mining for a Green Future- What Lies Ahead
  • Technology transfer and collaboration – an important tool in enhancing the healthcare ecosystem

Drop us a line..

February 2023
M T W T F S S
« Jan    
 12345
6789101112
13141516171819
20212223242526
2728  

FICCI Tag Cloud

banking budget business business confidence CAPAM 2017 Knowledge Paper capital markets Changing Face of Insurance crime direct selling economic relations economy economy insights Economy of Jobs economy watch education environment FDI ficci finance financial foresights fintech growth GST healthcare homeland security india industry innovation insurance MSME oil opec policy policy reforms RBI reforms retail skills Skills for All SME survey technology UK universal basic income women
   Get Updates via RSS Feed

   FICCI website

Social Media

  • Connect on Facebook
  • Connect on Twitter
  • Connect on LinkedIn
  • Connect on Instagram
  • Connect on YouTube

Archives

Popular Posts

  • Energizing travel towards a sustainable future
  • Mining for a Green Future- What Lies Ahead
  • Massive potential for farmers, consumer by strengthening millet value chain; Let’s strive to put ‘Millets on every plate’
© Copyright 2018. FICCI.