How Budget 2018 paved way for tech-based lending system?

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Technology based lendingUnion Finance Minister Arun Jaitley recently tabled the annual budget 2018 in the parliament, opening new vistas for various technology based lending options.

Expressing his views in this regard, Manu Sreekanta, Marketing Manager at Kuliza, shared some crucial insights on “How new-age technology driven players are satisfying the credit demands?”

“Finance Minister Arun Jaitley explicitly highlighted bridging credit demand in the economy, particularly for Micro- Small and Medium Enterprises (MSMEs). This definitely favours the online lending players, but we also forecast a huge demand for new age intelligent lending systems,” explained Manu.

Speaking about the increasing significance of internet and mobile phones, he said, “These initiatives by the government and rising smartphone users and internet penetration will act as a catalyst to transform the current lending scenario.”

“Modern day customers will demand hassle-free processes and intuitive experience from financial institutions to stay loyal. Hence, banks and Non-Banking Financial Companies (NBFCs) will need to upgrade their current systems in order to innovate and compete with the online lending players,” he added.

Financial institutions will need to reach a large set of audience which can only be possible by leveraging digital technologies and to cater to a diverse set of the audience looking for several loan schemes they will need to improve efficiencies in processing, bring in more open banking Application Programming Interface (APIs) and innovate with different loan products.

These efficiencies in processing can only be bought by systems that are flexible, agile, scalable and secure. Hence choosing a technology partner becomes very critical to beat the competition.

Disclaimer: The views expressed in the article above are those of the authors’ and do not necessarily represent or reflect the views of this publishing house.

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