Kaushik Banerjee, Chief Credit Officer, U GRO Capital, said that, “The banking sector has witnessed notable innovations in recent years.
Two significant innovations that took place are the ATM and UPI (Unified Payments Interface), both of which have revolutionised the co-lending business. Another upcoming innovation on the horison is co-lending, with aspirations for it to reach the scale and impact similar to UPI or ATM.”
He stated, “Government of India, RBI, and large PSU Banks have been committed to achieving financial inclusion, but there are inherent challenges in the decision-making process that result in bias, errors, and delays. Large PSU Banks and private banks have multiple responsibilities, such as managing the economy and foreign currency exchange (Forex). This is where small NBFCs or fintech companies like ours can excel in effectively reaching out to the underserved population. Thus, technology plays a crucial role in eliminating bias, errors, and delays, enabling seamless and efficient operations.”
He further added, “I believe that RBI should authorise account aggregators who share GST and banking data. Currently, there are a few portals available, but I anticipate that the number of such aggregators will increase in the future. With real-time data, decision-making can occur within a matter of minutes. Presently, our organisation offers loans up to three crore without requiring detailed financial documents. Instead, we rely on GST data, bank statements, and credit bureau data as the basis for our trade appraisal. Many banks are also exploring similar approaches, some with varying degrees of success. We have experienced significant growth in the past eighteen months, with lending amounting to 6500 crore. Out of this, around two to three thousand crore has been co-lended or core originated with larger banks and NBFCs. Technology plays a crucial role in enabling faster decision-making and provides a competitive advantage.”
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