For the new age fintechs and NBFCs, what does the competitive landscape look like?
While it’s true that the lending market is getting pretty crowded, there’s still plenty of room for new players to make a mark.
In fact, collaboration is key in the lending industry, and co-lending and business correspondents’ models are becoming more popular.
Few recent stats:
1) Disbursements through co-lending partnerships in FY22 – INR 5000 crores.
2) Co-lending amount quadrupled in just a year, with banks declaring portfolios of about INR 25,000+ crores.
3) A domestic microfinance company started four years ago with around INR 5 crores in net-owned funds. Today, they manage over INR 500 crores in assets.
4) Bank loans to NBFCs were twice the disbursement last year
So, how can new entrants establish a stable scale of operation?
The key to success and long-term growth is
1) Focus on niche segments for the customer base.
2) Keep your cost of operations optimum
3) Invest in the right talent and technology.
#nbfcs #fintech #newentrantsinlending #manispeaksmoney