The Covid pandemic compelled people across age groups to rely on digital platforms for various activities. Whether banking activities or buying groceries, more people are gradually shifting to online modes. While there has been a sharp increase in various banking activities, digital lending apps have gained many prominences. While lending digitally is still at a nascent stage for banks compared to physical modes, digital lending has gone up significantly for non-banking financial companies (NBFCs) in 2020, after the outbreak of Covid, says a recent report by the Reserve Bank of India (RBI).
The percentage of the total number of loans sanctioned by NBFCs through digital lending platforms increased by more than 55 percent between 2018 and 2020. There was a considerable rise in 2018 and 2019. Covid started spreading by the end of 2019, and the number spiked in 2020.
With the outbreak of Covid, there has been an alarming rise in the number of online banking frauds in India. This could be a reason for the fall in the digital number of loans disbursed by NBFCs and the increase for banks, though other factors also apply.
"There is a need to facilitate identification of bad actors in (the) digital lending space by enforcement agencies in a timely and less frictional manner. The payment system regulation should refine 'travel rules' for the narration of Time Password (OTP) and SMS/ e-mail alerts sent to users in connection with conducting payment transactions through any digital mode under the PSS Act (Payment and Settlement Systems Act)," says the report. 'Travel rules' include information required to be collected, retained, and included in every fund transfer transaction initiated by a financial institution on behalf of a customer and which should 'travel' (be passed along) to each successive financial institution in the chain.
As a team, Finaxin Octopus Technologies firmly believe that traditional financing needs to be reoriented for the informal sector, while we leverage technology to foster an air of trust and transparency that helps us serve customers better.
In today's day and age, applying for a private finance loan has become an easy and more readily approachable task. People needing financial support can access and apply for an online finance loan. There are many types of financial loans from various lending companies and banks. We give the best loan schemes that suit your needs.
We provide various schemes with a simple format, which makes the application of finance loans more attractive and give some of the best interest rates. We also do different analyses like consumer behaviour, current market schemes, competitor analysis, market analysis, Technological analysis, and digital analysis and provide very reliable, robust, and Cost-effective platforms for NBFCs. It also gives you various schemes which involve Cost effective operations and also gives you profitable business in the long run. We also check technical parameters like mobile app development, UI engagement with customers, and Digital marketing to reach potential customers through online mediums.
