NBFCs to evolve innovatively in challenging times, say experts at 5th NBFC100 Tech Summit

Highlighting the growing importance of Non-Banking Financial Companies (NBFCs) and several new emerging players in the Banking, Financial Services and Insurance (BFSI) domain, Elets Technomedia organised the 5th edition of its NBFC100 Tech Summit in Mumbai on November 20, 2018.

The summit witnessed the massive participation of over 125 NBFCs and 25 partners from across the country.

Several eminent dignitaries namely Dr Amitabh Rajan, Chairman, Reserve Bank of India Services Board, Dr Kavita Gupta, Managing Director, SICOM, Pavan K Gupta, Chief Executive Officer, Muthoot Housing Finance Co Ltd, Shashi Kumar Ravulapaty, Group Chief Technology Officer, Art Fintech and Navin Mehra, Regional Director, Fortinet were a part of the inaugural session titled “Non Banking Financial Company: Rising Significance of Providing Niche Banking and the Road Ahead.”

Sharing his views pertaining to the present situation of NBFCs in India, Dr Amitabh Rajan, Chairman, Reserve Bank of India Services Board said, “Non-Banking Financial Companies (NBFCs) are the emerging leaders. By and large, this sector is performing well in India. It is doing well because of the support from the middle-class segment of the society. These institutions are doing well because of the innovations that they are implementing. To do better in future and to survive in the market, NBFCs will have to be value driven.”

He also said that merely innovation is not enough but every institution will have to develop itself completely to survive.  Further, he shared several tips with reference to policies and RBI circulars that will help NBFCs in firming their existence in the market.

At the conclave, experts also discussed the ongoing challenging times and the ways NBFCs can maintain their existence.

“It is a time of challenge and reawakening. In these circumstances, it is a great opportunity for us to reestablish ourselves and re-instigate our identity in many ways. I remember after Harshad Mehta scam, the electronic mode of banking was implemented and transactions became so easy and convenient,” said Dr Kavita Gupta, Managing Director, SICOM.

“NBFCs are definitely acting as a catalyst to growth in the Indian economy. The sector has shown good growth as per the industry reports and it also emerging as the alternative source of funding after banks,” added Gupta.

Explaining about the diversification of NBFCs and their role expansion, Pavan K Gupta, Chief Executive Officer, Muthoot Housing Finance Co Ltd said, “NBFCs over the years have grown significantly. They are now working in microfinance, gold loans, consumer durables, housing finance and many more. These wide range of services are helping them in reaching out to the customers and meeting their diverse needs.”

Speaking in the context of Micro Finance Institutions (MFIs), he added, “Microfinance is altogether a different ball game. Microfinance customers are generally not catered by any other formal banking system. This segment was earlier dependent on private money lenders but not now MFIs reach out to them and serve their requirements.”

While several experts talked about the growth, Navin Mehra, Regional Director, Fortinet explained the security scenario in terms of financial institutions.

He said, “NBFCs are emerging as big firms in several major banking domains, be it is insurance, housing etc. NBFCs have a lot of potential. Financial Institutions are changing in the digital era. Data have become the most popular subject and it has surpassed oil. Giving data the optimum importance, Centre is planning to chalk out its own GDPR for data privacy.  In this, regard RBI has also come up with a circular and explained the areas that need security.”

Shashi Kumar Ravulapaty, Group Chief Technology Officer, Art Fintech shared his views pertaining to the role of technology provider companies in terms of NBFCs.

He said, “NBFC as a sector is at a very interesting juncture today, from challenges point of view. There are several activities that have occurred in the last two months have brought in major changes in institutions that deal into lending. Today, we see one new NBFC coming into existence every day. In the last two years, we have seen the formation of several big NBFCs, Small Finance Banks, Payments Banks etc. There is only one customer and there are several lenders today. Most of the technology providers are coming up and claiming to have all the services right from the customer targeting, customer onboarding, transaction management, loan management and finally the customer service.”

The conclave congregated several experts from across the NBFCs, Payments Bank, Small Finance Banks, MFIs, Housing Finance Institutions and many more.

Sa-Dhan joined as host partner, Finance Industry Development Council (FIDC) joined as supporting partner, Pennat was Lanyard Partner, Nucleus Software was Lending Technology Partner, Leadsquared joined as Sales Execution Partner, Forntinet was Security Partner, AllCloud was Cloud Lending Partner, AxionConnect was Branding Partner, Exotel, Vaultedge and SysArc Informatix were Associate Partners of the Summit.

The expo area registered the participation of several brands such as Mortan, Vymo, Priya, Vxl Software, VXL, Systech, Quantific, aclmobile, UiPath, Indus, EBIX Cash, Teckinfo, Sesame, Ezetap, Tata Tele Business Services, Kuliza, Data Resolve, RaPL and Conneqt.

The summit concluded with felicitation Ceremony and BFSI Leadership Awards that recognised the exemplary contribution made by NBFCs and Corporate.

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