Latest news with #BharatInclusionSummit
Time of India
22-04-2025
- Business
- Time of India
Fintechs must build collection muscle to scale lending business: Cred founder Kunal Shah
Cred founder Kunal Shah said fintech startups focusing on small-ticket lending must invest in collection capabilities to ensure repayments from defaulters and build sustainable businesses. Speaking at the Bharat Inclusion Summit hosted by IIMA Ventures, Shah said many companies had misdiagnosed the problem. 'When it comes to mass-market lending, the issue is not demand but collections. If you're offering loans to people below a certain income level, there's unlimited potential to disburse. But the real challenge lies in getting the money back,' he said. 'Digital companies must focus more on collections than demand—India is credit-hungry, so the problem isn't disbursal but recovery,' he added. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like They were so beautiful before; look at them now; number 10 will Surprise you Today's NYC Undo Shah stressed that fintech founders are essentially in the business of trust, irrespective of the category. 'If you're building in fintech, you're building trust. That's the foundation for anything to work efficiently.' Bengaluru-based Cred, which began as a credit card bill payments platform, has since expanded into unsecured lending , insurance distribution, and secured credit products. Last month, it launched loans against mutual funds—one of its first secured lending offerings. ET had reported in June 2024 about the company's plans to enter this space. Live Events In an interview in February , Shah told us that such products deepen trust with users and help unlock more revenue opportunities. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories ET reported on April 14 that Cred has held talks to mop up $100–200 million, largely from its existing investors, at a reduced valuation of $4 billion, a cut of more than 30% from 2022 when it last raised funding. The Peak XV Partners-backed startup has also invested in NewTap Technologies, which owns a stake in NewTap Finance, a non-banking finance company (NBFC) promoted by Shah.
Time of India
22-04-2025
- Business
- Time of India
RBI took initiative to bridge communication gap with fintechs: Deputy governor
The Reserve Bank of India (RBI) took the initiative to reach out to fintech startups and begin a healthy and constant conversation, which has helped the regulator understand the ecosystem better, deputy governor T Rabi Sankar said on Tuesday. Addressing the Bharat Inclusion Summit in Bengaluru, Sankar said, 'Initially, there was a sort oT Rabi Sankarf gap. The ecosystem wasn't really interacting (with the regulator) as much as the RBI would have liked. We — myself, the Governor, and various officials in the department — took the initiative.' He added that the regulator made additional efforts to ensure that the conversation between the ecosystem and the regulator is healthy, constant, and productive. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo Over the past year, in particular, he said, the central bank has understood the fintech sector's expectations from the RBI. 'At the same time, I would like to believe it has helped the fintech ecosystem understand the expectations of the regulator; understand the importance of trust, which would come from responsible innovation,' he said. Live Events The RBI official also said that the central bank has taken the initiative to help the fintech sector come up with a self-regulatory organisation (SRO), which can act as a bridge between the industry and the RBI. Currently FACE (Fintech Association of Consumer Empowerment) is the only Fintech-SRO licensed by the RBI. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories These statements from one of the senior-most officials of the banking regulator come at a time when scrutiny on the fintech sector has gone up manifold, resulting in a business slowdown and funding challenges for many companies. From tightening the rules around peer-to-peer lending to bringing payment startups within the fold of regulations, the RBI has been clamping down on unchecked innovation in the space over the last couple of years.
