MoneyTap: Transforming lending through a balanced approach

We believe in responsible & disciplined lending with one of the lowest Non-performing Assets (NPAs) in the industry. We took a balanced approach much before the liquidity crunch hit. Now that we have our own NBFC license, we are extremely cautious in selecting risk portfolios according to the regulations, says Anuj Kacker, COO & CO-Founder,  MoneyTap in conversation with Anupama Suresh Mehra of Elets News Network (ENN).

Anuj Kacker

How was the year 2019 for MoneyTap?

2019 has been a great year for us. We expanded our operations in 60+ cities and reached out to larger customer segments with varied credit needs.

We have achieved a disbursal Average Run Rate (ARR) of Rs 2,500 crores. The year is not yet over and we have already disbursed more than Rs 1,000 crore worth of loans.

2019 is also the year we got our Non-banking Financial Companies (NBFCs) license from the Reserve Bank of India (RBI). With this new license, we aim to further scale our business and deepen our existing Bank/NBFC partnerships, through a strong focus on tech innovation.

How MoneyTap is surviving the crunch situation?

The liquidity crunch doesn’t affect us because we have bank partners. Banks are not affected by the market cash crunch and are going bullish in their lending. So while others are not able to lend much because of the dried up funds, our business is flourishing.

Also, we believe in responsible & disciplined lending with one of the lowest Non-performing Assets (NPAs) in the industry. We took a balanced approach much before the liquidity crunch hit. Now that we have our own NBFC license, we are extremely cautious in selecting risk portfolios according to the regulations.

How the collection is not getting affected for MoneyTap?

Our responsible and balanced approach to lending starts with a cautious selection of risk portfolios. Our collections are not affected much because we optimize the use of technology in the collections process. Our in-house team works closely with tech to harness digital predictions for collections. This leads to reduced costs and NPAs.

MoneyTap has less than 1% NPA. Please comment.

A combination of factors works in optimizing our process. Working with bank partners; taking a measured approach to lending; the use of Artificial Intelligence (AI) & Machine Learning (ML) in predicting risk levels and collection amounts from existing portfolios – all these systems help us maintain a low NPA.

What is the overall expansion plan for MoneyTap?

We are looking to expand our footprint to more Indian cities in Tier 2 and Tier 3 segments. Our focus is always on expanding to new geographies which have a potential for innovation in consumer lending and a need for credit.

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