Latest News | 55-75pc of Loans Will Be Booked Digitally by 2025: Fintech Expert
Get latest articles and stories on Latest News at LatestLY. Digital onboarding for loans will increase to 55-75 per cent of the total credit disbursement in the next five years from about 20 per cent now, a financial technology expert has said.
Kolkata, Aug 30 (PTI) Digital onboarding for loans will increase to 55-75 per cent of the total credit disbursement in the next five years from about 20 per cent now, a financial technology expert has said.
Between 2015 and 2020, around 20 per cent of credit disbursements were technology-driven and were extremely successful in retail and small business loans, said Akhil Handa, head fintech, partnerships & mobile banking and digital lending department, Bank of Baroda.
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"In the next phase of digital lending between 2020 and 2025, it will go beyond tier I and II cities. By 2025, an estimated 55 to 75 per cent of loans that get booked will be digital in nature," Handa said in a recent Indian Chamber of Commerce organised webinar.
Out of the 75 million MSMEs in the country, only 18 million are digitised now while the majority would be so in the next five years and COVID-19 pandemic would be a major driver for change, he said.
Infrastructure enablers such as digital land registry, account aggregators, and Open Credit Enablement Network (OCEN) which connects lenders and marketplaces will come into place and the linchpin of the entire digital lending journey will be analytics, Handa said.
Fintech has grown by 100 per cent in the last one year, Equifax Credit Information Services managing director K M Nanaiah said in the webinar.
Fintech companies, in association with banks and NBFCs, have played a key role in popularising digital lending.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)