Introduction – Digital Lending
Digital lending India process of getting a loan digitally or providing instant funds electronically requiring minimum or no paperwork. With technological advancement, India is also on a journey to adopt Digital lending revolutionizing the Traditional banking system. This blog will explore the different factors that have led to the rise of Digital loan/lending in India using online technology. Loans can be delivered in a faster way and more efficiently.
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Digital lending also encompasses traditional financial institutions requirements as online loan applications offered by a bank or credit union are filled entirely online through the use of an automated platform.
A comprehensive automated platform for digital lending equipped with a set of software, such as an online loan application, document capture, electronic signatures, credit analysis, loan pricing, checking creditworthiness score and much more.
Innovations in the digital lending field have accelerated the growth of financial inclusion, enabling financial service providers (FSPs) to offer better services to more underserved clients in faster ways. The government’s alo emphasizes incentivizing and integrating digital lending models to promote financial inclusion and extend high-quality financial assistance to underserved communities and businesses. New age borrowers can easily be pulled towards digital lending market
Digital lending in India offers a vast array of opportunities from increased productivity, close more loans, and increased revenue per loan with cheaper, faster, and automated services.
Five key factors responsible for the driving digital lending growth in India:
Tech-Savvy Crowd
Technology infused society making consumers digitally savvy.
From ordering food online to buy groceries online to book movies, consumers rely on online channels to make everyday purchases. With technological advancement, buyer’s behaviour is constantly changing and there is no need for physical interaction with the sellers. So, the financial sector is no exception when it comes to the wrath of this technology operations in the finance sector and digital lending in India is quite convenient and possible due to these technological advancements .
Big Data and Technological Advancements
The advancements in smartphones has created a landscape of all the lending services to be available at the fingertips of the people. With this surge in the number of users for devices like smartwatches, smartphones, cars, etc., enables users to remain connected to the internet, and services can be accessed online.The advancements in technology has enabled companies in the financial sector to create substantial value eg: Visa. Also enables the fintech companies to employ biometric technology like iris, thumbprints, instant payments, face recognition, block chain, etc, which are critical elements in digital lending.
Upsurge Innovative Models
With the emergence of Innovative operating models, further fueling digital lending in India. Fintech companies are adopting these digital financial models, accelerating digital lending growth in India and worldwide.
Main archetypes are of 4 types:
Aggregator\ Partnership model
Independent platform
Peer-to-peer platform
Value addition to a core service
Aggregator\ Partnership Model
Under this model, lenders partner with bank or FinTech companies, facilitating digital lending in India.
Independent Platform
A Fintech company can lend loans directly through digital medium ,to consumers, with the help of raised debts and equity funds through institutions. Here no partnership is done with the incumbent banks.
Peer-to-peer lending
Peer-to-peer lending is gaining momentum in few leading countries across the globe. Peer-to-peer is a lending marketplace catering consumers through multiple online channels.
Value Service Addition
As the name suggests, these models are adding value to existing large businesses consumers of the companies.
No Paperwork
Digitization facilitates the paperless process for digital lending and all documents need to be submitted online while filling the loan application process online.
Whereas, traditional bank disbursing loans requires endless paperwork.
Quick Disbursal
Instant loan approval in the case of digital lending and it’s just a matter of time. And all you need to have all the relevant documents ready beforehand.
Techsaga, a best digital marketing company, empowers banking organisations by providing digital transformation driven intelligent banking software solutions to work closely with banks and financial companies of any size.Our modernized banking platform provides instant and secure transactions to deliver omni-channel experiences across products and services in the banking sector.
With Techsaga, client can achieve the following benefits:
Short delivery time for services ensuring regulatory compliance and security.
Increased team productivity adapting seamless workflow.
Operation cost reduced using integrated robust platform
Building customer trust through multiple channels
Gain a competitive advantage.
Decrease market time to reach customers through mobile apps.
Takeaway:
With the integration of technology, digital loans can be processed and optimized allowing digital lenders to operate in reduced time and maintain robust systems, following ever-changing regulations.
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