Digital Payments & Lending Revolution in Indian FinTech Space

The Digital Payments landscape in India has been revolutionized by the regulators and the banks’ proactive initiatives, e.g., IndiaStack and UPI. It is quite surprising that India has emerged as one of the most exciting markets for digital payments across the world. Last year, home-grown payment networks (RuPay and UPI) took a lion’s share of the total digital transactions, ~65%, showcasing how for once the Government efforts have been in the right direction for achieving targets.

Popular Payment methods are e-wallets, UPI, biometric payments, BharatQR code, and sound-wave-based payment technologies. One of the primary reasons can be attributed to the forward-thinking of central & state governments and Reserve Bank of India for successfully bringing a digital payment revolution in India. Buoyed by the success of Virtual Payment Address – UPI (it’s like your e-mail id), Google wrote to the US Federal Reserve, about UPI model adopted in India and recommended creating

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AskCred – Can Help You Optimise Your Card Usage During Covid

COVID has been disastrous for Individuals who work for businesses heavily involved in sectors like travel, tourism and entertainment. They have felt the impact most directly with loss of bonus and other incentive pay often followed by temporary or permanent job loss. As the economic contraction turns into a longer-term economic recession, one can expect high unemployment figures to continue, along with lower salaries as more job seekers compete for fewer available jobs.

This is bound to have an impact on one’s levels of debt, especially on credit cards. If you have available credit on your credit cards, and you need money, you may want to use your credit card limit and make minimum amount due payments (rather than pay the card dues off in full). But credit cards typically charge very high interest rates. This increase your outflow and also increases your card limit utilization ratio. This can decrease your CIBIL score.

The credit utilization ratio plays a

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Chinese FinTechs Desperate for Slice of Indian Consumer Finance

In the midst of a deep down consumer financing crisis by Indian Fintech Startups, guess who is at the Gateway of India, Mumbai asking for NBFC license to operate in the Indian FinTech space. Yes! More than 2 dozen Chinese Dragons are waiting at the RBI gate in Mumbai.

What’s so special about Chinese Fintech Companies ?
Flush with funds, they target customers in the sub-prime segment [No CIBIL Score or a Score of just 500-550] and offer small-ticket loans (mainly pay cheque loans) which are short term in nature and profitable. There has been a regulatory clampdown in China last year which

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Indians embrace Digital Payments – JAM Pays Off

The Government of India’s push for digital transactions which started from 2016 using JAM trinity (JanDhan, Aadhar and Mobile) is helping in changing the consumer preference structurally. This structural shift in the consumer preference will also help the credit card industry going forward.

Credit Card outstanding in India is just ~6% of debit card spends and this has not improved meaningfully in recent times. If we look at the composition of digital transaction over

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Why SBI Cards has Largest Number of Co-Branded Partners ?

SBI Cards has the highest number of co-brand partnerships (18) and these cards comprise one third of its card additions. Co-branded cards are issued in conjunction with consumer-facing partners with strong and loyal customer bases. Marquee co-brand partners include the likes of Air India, IRCTC, Apollo, OLA, Yatra, and BPCL.

The value offerings of these cards are designed to address specific needs of customers and increase stickiness. It also serves to enhance the brand strength of SBI Cards by partnering with strong brands and allows access to a

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CIBIL Data – Retail Stress Increases in India

India’s Leading Credit Bureau – CIBIL data reveals that delinquencies across product levels in the retail segment have shown a modest increase but the situation is not alarming. The main segment which is under stress is auto loans, which is driven by CVs as evidenced in the latest results of banks.

Credit Card Segment – While the overall credit card balances grew by ~41% YoY to ~Rs1.1tn,
balances in the semi-urban and rural areas grew at a faster pace (+52% YoY) indicating increasing usage of cards as a payment option in these areas.

In the Personal Loan segment, the origination volumes more than doubled to 7.3m accounts out of which ~68% were

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