fintech-lending-india

The low starting point of digital payments, has led to mass adoption of all types of digital payment products and are growing at a healthy pace in their respective playing fields. Market share gains of UPI in digital payments should be seen as an expansion of digital payments in customer or merchant segments that have not been target credit card segments. In this backdrop, let us examine what SBI Credit Cards is doing to wade off the onslaught from UPI & Mobile Wallets.

Credit Cards are meant for P2M (person to merchant) payments and not for P2P (person to person) payments. Most of the rapid rise in UPI payments belongs to the P2P category. Data on UPI payments in P2M categories started to be reported from April 2020. UPI P2M payments have also seen a strong rise although the value of spends is broadly comparable to credit card and

Read moreHow SBI Cards is Fighting the UPI / e-Payments Onslaught ?

In the COVID-19 pandemic times, retail credit inquiry volumes in October 2020 were 81% of last year October levels. Enquiry volumes have improved in home loans as well as Loan Against Properties (LAP). Auto and 2W loans have also seen rebound in volumes due to shift in consumer preferences. Personal loan volumes are yet to rebound impacted by fintechs-driven growth during the pre-Covid time. State owned PSU banks have been the earliest to recommence lending followed by private banks. NBFCs have seen much slower recovery. Further, semi-urban and rural have seen better rebound. For Sep 2020, PSU banks inquiry volumes are at 1.2X yoy whereas private banks are at ~0.9X and NBFCs at 0.6X. Although slow initially, credit cards are now showing better traction. PSU banks have shown better growth pick-up compared to

Read moreRetail Loan Inquiries Improve + Delinquencies at FINTECH & NBFCS – CIBIL