Managing the Risks of Digital Lending
TECHNOLOGY HAS BEEN the crux of the Indian banking system and the advent of Covid-19 has fuelled the shift of business models from ‘physical’ to ‘digital’. The journey of innovation, which started with internet banking and digital means of payments, graduated to account opening, digital lending, wealth-tech and invest-tech solutions, and now has moved close to digital banks with the advent of neo-banking models/‘bankingas-a-service’ platform providers. With rising customer demand for virtual banking, increasing significance of superior customer experience, growth of the ecommerce market, and the rise of the fintechs, digital has almost become synonymous with banking in current times. It has also made banking accessible to the non-banked/under-banked.
The lending business has also been influenced by digitisation. A riveting evolution of digitisation across the lending landscape in India over the past few years can be attributed to increasing internet penetration, amplified smartphone usage, emergence of advanced technologies, a favourable regulatory environment, and
