Banks in India|Bank Jobs|Bank Recruitment|Banking News,Information & Articles|Banking in India|Bank Loan|Bank Employment|Bank Interest
      Recent News :
Indian Banking : :

Fintech helps banks disburse more loans

By:  GK GUPTA(ET) , Place:  Chandigarh ,  Update:04 Sep 2017
Two years of fintechdriven reach has helped banks grow about 15-20 per cent indicating that banks' dependence on `feeton-street' to campaign for loans may recede in a few years. 
Bankers said nearly a third of their customers below 30 years were on-boarded through the digital platform. 
Banks are using fintech players to qualify good customers faster and give on-the-fly credit. Significant reduction in time used for taking better credit decisions have led to higher conversion in disbursal of loans. 
“The idea is to get a better sense about the customers. We are selectively providing credit support to customers on Amazon, there is fintech Power2SME which we work with, we are also working with Uber drivers,“ said Ashok Garg, executive director of Bank of BarodaBSE 0.04 %. 
“These tools help us in doing better due diligence of our potential customers. The quantum of money that we lend via these channels is also increasing gradually.“ 
RBI data showed retail loans grew 15 per cent while overall banking credit grew 4.7 per cent on a yearon-year (YoY) basis. 
Personal loans grew the most at 35.7 per cent followed by credit card outstanding at over 32.5 per cent. Loans to weaker sections also grew over 11 per cent on a YoY basis. 
“Fintech is collaboration for us, a lot of machine learning is happening via them,“ said Pralay Mondal, business head ­ retail and business banking at Yes BankBSE -0.51 %. 
“We are working with aggregators as well; we don't have a database of 20 million people so we are working with channels which are sitting on a large database. Traditional channels are doing well, but incrementally, we see the trend changing.“ 

Another private sector lender Kotak MahindraBSE -0.91 % Bank's online business grew three times over the last couple of years. Last year, its online lending business only for personal loans grew 12 per cent and as of last quarter that number moved up to 23 per cent. 

 Related News
This SBI Account Has No Minimum Balance Charges But Offers Same Interest Rate  (22 Sep 2017)
Bank of India mulling merger, says CEO  (19 Sep 2017)
SBI reviewing minimum balance charges for savings accounts  (18 Sep 2017)
Total stressed loans in banking unlikely to increase significantly: Crisil  (15 Sep 2017)
Banks shy away from companies facing NCLT action  (14 Sep 2017)
 Most Popular News
Bank Jobs : Apply Date and Recruitment Test Exams in 2014-2015 (02 Aug 2015)
Bank Branch ATM Space Required by banks in India: View and Apply (07 Aug 2014)
Bank Probationary Officer (PO) Starting Salary, Perk and facilities in India (02 Apr 2015)
Gratuity hike effective from 24.05.2010 : Gazette Notification (31 May 2010)
Clerical Cadre Common Written Exam, CWE 2011-2012 IBPS Notification: Online Appl .. (22 Aug 2011)
0 Recent Comments
0 More Comments
Your Name :
Email :
Comment :
click for new code
Security Code :
News Category