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Fintech Pulse Newsletter - Vol I

Trends and opportunities in partnership with SIDBI

Executive Summary

The Fintech Lending report by SIDBI and Equifax will help in understanding the current dynamics of Fintechs Lending in India, which is the second largest sector within Fintechs after Digital Payments. The report aims to bring out how the emerging technologies are causing disruption in the financial sector and the impact of these technologies in credit landscape, in addition to the analytical contents regarding performance etc. with reference to key parameters. This report focuses on the upward trajectory of New Age Fintechs, emerging as differentiators in timely and adequate delivery of credit to unserved and underserved; there are also cross comparisons of Lending Fintechs vis-a-vis the traditional banks and NBFCs. The newsletter also includes the performance of Lending Fintechs across products, geographies and different demographic segments and analyses key trends. Despite more than a 100% growth in disbursement by Fintechs in the last one year, a huge market is yet unserved. This augurs well for the future of lending Fintechs. Personal loans have been the star product for majority of Fintechs across regions with a 66% share among the products and will continue to fuel lending growth for Fintechs. The delinquencies for Fintechs are indeed higher as compared to other lenders, which may be a result of serving subprime/prime/new to credit segments. Accordingly, Fintechs need to continue with enhanced focus on using additional data sources and robust credit models to have a sustainable business. Geographically, a majority of Fintechs still basically serve the urban population; however, many Fintechs are exploring avenues of serving the semi urban and rural population through digital means. The current report is an analysis of 39 NBFC-Fintechs (as on Dec’19) which submit data to Equifax. Through this report, we aim to answer key questions and hypothesis on the Fintech growth, Regional presence & outreach, Borrower profile, Risk profiling and growth trends in Fintech lending space.

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