Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

The <keyword id="20018890" type="General" weightage="20" keywordseo="digital-infrastructure" source="keywords">digital infrastructure</keyword> has made the <keyword id="20572901" type="General" weightage="20" keywordseo="loan-sanctioning" source="keywords">loan sanctioning</keyword> system adopt an online mode, but the <keyword id="21614839" type="General" weightage="20" keywordseo="loan-recovery" source="keywords">loan recovery</keyword> still requires a 'feet on the street' approach, says <keyword id="20506781" type="General" weightage="20" keywordseo="swaminathan-j" source="keywords">Swaminathan J</keyword>, Deputy Governor of Reserve Bank of India (RBI). Speaking at a media event in Mumbai, the deputy Governor of RBI noted that with the digital infrastructure at place, many <keyword id="22721545" type="General" weightage="20" keywordseo="fintech-players" source="keywords">fintech players</keyword> are giving loans to customers with poor credit profiles, and up on default, use aggressive recovery tactics. "While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending <keyword id="22791879" type="General" weightage="20" keywordseo="small-value-loans" source="keywords">small-value loans</keyword> to customers who often have a poor credit profiles" said the deputy governor. He emphasized that the business model of many fintech platforms involves offering small-value loans to customers who often have poor credit profiles. This has led to the adoption of aggressive recovery strategies, which on many occasions also crosses ethical boundaries. He also highlighted one particularly concerning practice that involves the invasion of customers' privacy, where recovery agents access the personal data and contacts of borrowers and use that as a threat practice. Swaminathan cautioned that such tactics not only infringe on individuals right to privacy, but also risk damaging the reputation of regulated lenders associated with these fintech platforms. He also highlighted RBI's regulations on outsourcing, that even though regulated financial entities delegate certain activities to third parties, they remain ultimately accountable for the actions of their outsourced agents. The deputy governor also noted that the digitisation allows banks and NBFCs to leverage data for greater insights into their customers' requirements and behaviour, which can be used for developing bespoke products apart from facilitating better risk management and compliance. He stated that the role of RBI as a regulator is to establish guardrails or a balanced framework that encourages innovation while ensuring that risks are managed prudently. The deputy governor also indicated the primary goal of RBI is to ensure the stability and integrity of the financial system and not to hinder business operations.

Loan sanctioning has gone digital, but recovery still needs a 'feet on the street' approach, says RBI Deputy Governor

Mumbai, Fintech players should form <keyword id="18684976" type="General" weightage="50" keywordseo="a-self-regulatory-organisation" source="Orion">a self regulatory organisation</keyword> for an orderly growth of the industry that is projected to have revenues of USD 200 billion by 2030, <keyword id="7268643" type="General" weightage="20" keywordseo="rbi-governor-shaktikanta-das" source="Orion">RBI Governor Shaktikanta Das</keyword> said on Wednesday. Addressing the industry at the <keyword id="9621521" type="General" weightage="50" keywordseo="global-fintech-fest" source="Orion">Global Fintech Fest</keyword> here, Das said fintech players need to evolve industry best practices to avoid misselling, stress on ethical practices, pricing transparency and take care of privacy and data protection concerns. "I would like to use this opportunity to urge and encourage the fintechs to establish a Self Regulatory Organisation (SRO) themselves," he said and assured all help from the Reserve Bank of India (RBI) for the process. The fintech players should form the SRO at the earliest, Das said and hoped that such a platform will be ready at least by the next edition of the yearly event. Stating that other industries also have SROs, Das said forming an SRO will help the players to voice their concerns. He also said that having the SRO will reduce the burden of regulating a dynamic sector off the RBI's shoulders. Das said regulators play a critical role in addressing arbitrage, ensuring compliance with existing laws, and adopting regulations as per technological advancements. Further, he asked the fintech players -- most of them startups -- to avoid the "relentless drive for valuations" and profits, and asked them to focus on customer centricity. "... to focus on customers means embracing a customer-centric approach to innovation by understanding the needs of customers, making provisions that protect customer interests and earn their trust," he added. He said that good governance will be key to durable and long term success of any company and in particular, the fintech players. Technological innovation has "unprecedented potential" to make finance more inclusive, competitive and robust, Das said, adding that advancements in technology need to evolve in a "responsible" manner. "Fintech players should themselves ensure responsible digital innovations. The Reserve Bank on its part will continue to drive the necessary regulatory and other policy measures to promote a vibrant and responsive fintech ecosystem," he said. While stressing that the coming years hold immense promise which need to be leveraged by innovators, the RBI chief said that as per projections, the fintech sector revenues are set to touch USD 200 billion by 2030. "We are at the cusp of a major transformation in fintech sector". Das also spoke about the progress on the Central Bank Digital Currency and said that newer use cases will be soon added on the wholesale CBDC front. The CBDC retail pilot is currently being operated through 13 banks across 26 cities, Das said, adding that around 1.46 million users and 0.31 million merchants are currently part of the pilot as on August 31, 2023. RBI has also enabled full inter-operability of CBDC with UPI QR codes, and is targeting 10 lakh CBDC transactions per day by December 2023 which will give it sufficient data points for analysis, Das said. Meanwhile, Srinivas Jain, the Co-Chairman of the Fintech Convergence Council, said it will be working earnestly to have an SRO in place at the earliest. "We are not on the same pages on who all from the fintech space can be members as currently this space is dominated by payments tech players but there are many others also in the fray," he told PTI.

RBI Governor asks fintech players to form self regulatory organisation

<ul><li>According to <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword>, the <keyword id="19945816" type="General" weightage="20" keywordseo="fintech" source="keywords">Fintech</keyword> <keyword id="881153" type="General" weightage="20" keywordseo="self-regulatory-organisation" source="Orion">self regulatory organisation</keyword> (SRO-FT) would derive its strength from its membership, ensuring that it is truly representative of the <keyword id="6133582" type="General" weightage="20" keywordseo="fintech-sector" source="Orion">fintech sector</keyword>. </li><li>The <keyword id="19901291" type="General" weightage="20" keywordseo="sro" source="keywords">SRO</keyword> model enables a balance between regulation and innovation, which is especially critical in fast-evolving sectors such as fintech. </li><li>The SRO-FT is anticipated to function impartially, with credibility and responsibility under the supervision of the regulator. </li></ul>The Reserve Bank(RBI) of India has released a preliminary framework outlining general functions, governance standards, and eligibility requirements for the establishment of a self-regulatory organisation for FinTech firms (SRO-FT). The recognition of SRO-FTs would be determined by the quantity and characteristics of the applications received. According to the RBI, “The SRO-FT would derive its strength from its membership, ensuring that it is truly representative of the fintech sector. Through comprehensive membership agreements that encompass a broad spectrum of industry players, the SRO-FT should gain the legitimacy and credibility to not only frame baseline standards and rules of conduct codes, but also to effectively monitor and enforce them.” Keeping up with technological progress “The RBI's move to establish an SRO framework is a game-changer in financial regulations, especially for digital lending and AI-driven innovation. This is a strong shift towards a collaborative, adaptive ecosystem. By integrating industry insights into regulation, we're ensuring that rules are practical and keep up with technological progress, fostering innovation and growth,” says <keyword id="20212226" type="General" weightage="20" keywordseo="adhil-shetty" source="keywords">Adhil Shetty</keyword>, CEO, BankBazaar, a financial marketplace. He adds that the SRO model enables a balance between regulation and innovation, which is especially critical in fast-evolving sectors such as fintech. This is not just about ensuring compliance; it's about creating a culture of integrity and ethical practices that are ingrained in the industry's DNA. The RBI's commitment to this collaborative approach is thus a significant step in developing a resilient financial ecosystem. Healthy and sustainable growth of the fintech sector “The creation of an SRO is seen as crucial in combating the influence of unscrupulous lenders, promoting ethical conduct, strengthening lending infrastructure, and formulating adaptable regulatory strategies,” says <keyword id="20212225" type="General" weightage="20" keywordseo="madhusudan-ekambaram" source="keywords">Madhusudan Ekambaram</keyword>, Co-founder and CEO, KreditBee, a personal loan app. The SRO-FT is anticipated to function impartially, with credibility and responsibility under the supervision of the regulator. Its primary goal is to contribute to the healthy and sustainable growth of the fintech sector, while also charting a smooth path to phased regulatory compliance when necessary. “This collaborative and participatory approach aligns with the RBI's overarching objective of fostering a resilient and sustainable financial ecosystem, emphasising ethical behaviour and transparency,” says Ekambaram. The SRO-FT is thus expected to play a pivotal role in shaping the course of digital lending in India by ensuring the adoption of responsible practices and maintaining integrity within the industry.

Fintech SRO aims to enhance credibility of sector, promote ethical conduct

Mumbai, The <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword> on Monday released a 'draft framework for recognising <keyword id="20198317" type="General" weightage="20" keywordseo="self-regulatory-organisations" source="keywords">Self-Regulatory Organisations</keyword> (SRO) for <keyword id="19942953" type="General" weightage="20" keywordseo="fintech-sector" source="keywords">FinTech Sector</keyword>', laying down the characteristics of a <keyword id="19945816" type="General" weightage="20" keywordseo="fintech" source="keywords">FinTech</keyword> SRO, and includes the required functions and governance standards. FinTechs are significantly reshaping the landscape of financial services by streamlining processes, improving accessibility, and reducing costs. Achieving a healthy balance between facilitating innovation by the industry on the one hand, and meeting regulatory priorities in a manner that protects consumers and contains risk, on the other, is crucial to optimising the contribution of the FinTech sector, the RBI said. "Self-regulation within the FinTech sector is a preferred approach for achieving the desired balance," the central bank stated. According to the RBI draft framework, the SRO-FT would derive its strength from its membership, ensuring that it is truly representative of the FinTech sector. Through comprehensive membership agreements that encompass a broad spectrum of industry players, the SRO-FT should gain the legitimacy and credibility to not only frame baseline standards and rules of conduct codes, but also to effectively monitor and enforce them. The SRO-FT must be looked up to and accepted by the industry as the key body for setting market standards, defining rules of conduct and ensuring voluntary adoption of the common framework by its members, the RBI said. The framework also states that the SRO-FT should be development-oriented, actively contributing to the growth and evolution of the industry. This involves providing specialised knowledge and expertise, offering guidance, and contributing to capacity building through training programs, and prescribing minimum eligibility criteria for its members. Also, members should perceive the SRO-FT as a legitimate arbiter of disputes. This would require a transparent and fair resolution mechanism for disputes arising among members that instils confidence in the FinTech industry. By efficiently handling conflicts and grievances, the SRO-FT would contribute to a more stable and harmonious FinTech environment. A proactive <keyword id="20198316" type="General" weightage="20" keywordseo="sroft" source="keywords">SROFT</keyword> should be capable of motivating its members to align with regulatory priorities. This would involve facilitating communication between industry players and regulatory bodies, advocating for necessary changes, and promoting a culture of compliance. The SROFT, as its duty towards ensuring compliance, should be empowered to investigate and take disciplinary action against its members for non-adherence to codes/standards/rules. The RBI said comments from stakeholders and members of the public on the draft framework may be sent by end February 2024, through e-mail. The final framework will be issued taking into account stakeholder and public responses.

RBI releases draft framework for Fintech sector self-regulatory organisations

Fintech player <keyword id="15835888" type="General" weightage="50" keywordseo="zaggle-prepaid-ocean-services-ltd" source="Orion">Zaggle Prepaid Ocean Services Ltd</keyword> has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering. The <keyword id="6354763" type="General" weightage="100" keywordseo="ipo" source="Orion">IPO</keyword> (initial public offering) comprises a fresh issue of equity shares worth Rs 490 crore and an offer for sale (<keyword id="883402" type="General" weightage="50" keywordseo="ofs" source="Orion">OFS</keyword>) component of 1.05 crore stocks by promoters, investors and other shareholders, according to the draft red herring prospectus (DRHP). Those offering shares in the OFS include promoters -- Raj P Narayanam and Avinash Ramesh Godkhindi and investors -- VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC, and <keyword id="15835889" type="General" weightage="50" keywordseo="ventureast-trustee-company" source="Orion">Ventureast Trustee Company</keyword>. Proceeds from the fresh issue would be utilised towards customer acquisition and retention, development of technology and products, payment of debt and general corporate purposes. Founded in 2011, the company operates in the business-to-business-to-customer segment. It has created a market niche in the country by offering a combined solution for spend management through prepaid cards and employee management (through SaaS). It offers digitized solutions for employee tax benefits, expense management, corporate gifting and rewards and recognition programmes. The company has 1,896 customers and 19.82 lakh users as of June-end. ICICI Securities, Equirus Capital, IIFL Securities and JM Financial have been appointed as merchant bankers to manage the IPO. The equity shares of the company will be listed on the <keyword id="35140" type="General" weightage="50" keywordseo="bse" source="Orion">BSE</keyword> and NSE. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/dabur-just-dial-hindustan-zinc-among-stocks-to-watch-out-for/articleshow/96359393.cms">Sensex, Nifty50 open lower amid mixed market cues – Dabur, Just Dial, Hindustan Zinc among stocks to watch out for</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/abans-holdings-ipo-here-is-how-to-check-the-allotment-status/articleshow/96360387.cms">Abans Holdings IPO: Here is how to check the allotment status</a>

Fintech player Zaggle files IPO papers with Sebi to mobilise funds via IPO

Hi! <a href="https://twitter.com/dandefrancesco">Dan DeFrancesco</a> in NYC, but I'm considering making a trip to Canada to nab <a href="https://www.insider.com/canadian-vintage-candy-owner-struggling-to-give-away-chocolate-bars-2023-4">some of these chocolate bars from this woman who literally can't give them away fast enough</a>.Today we've got stories on <a href="https://www.businessinsider.com/recession-ceo-pay-larry-fink-blackrock-asset-manager-aum-2023-4">BlackRock's Larry Fink taking a pay cut</a>, <a href="https://www.wsj.com/articles/dont-call-them-barbarians-at-the-gate-b12ad495">KKR's new look</a>, and <a href="https://www.insider.com/review-ghost-gym-williamsburg-luxury-fitness-new-york-city-2023-4">perhaps NYC's most exclusive gym</a>. But first, can I see your phone?If this was forwarded to you, <a href="https://www.businessinsider.com/subscription/newsletter/10-things-on-wall-street">sign up here</a>. Download Insider's app <a href="https://www.insider.com/app">here</a>.<a href="https://www.businessinsider.com/top-tech-executives-driving-innovation-paypal-visa-mastercard-stripe-plaid-2023-2#eric-hoffman-scaling-apple-pays-tap-to-pay-2"></a>1. An apple a day...Quick, name a fintech.What's the first name that popped into your head? Robinhood? Stripe? PayPal? Chime? Plaid? Square?There's one I'll bet most of you missed, and it's a big one: Apple.The tech giant isn't always considered, but it has made a case for itself as a key fintech player over the years. In payments, specifically, its made progress via Apple Pay, the Apple Wallet, and the Apple Card.On Monday, Apple took another step deeper into financial services, announcing the launch of <a href="https://affiliate.insider.com?h=675531ecca370cf3c0ffcdf503d790f69b7afba84eb2053245647c647d1a5d28&amp;postID=643d638c1aaf4e2b0b1df9d6&amp;site=bi&amp;u=https%3A%2F%2Fwww.apple.com%2Fnewsroom%2F2023%2F04%2Fapple-cards-new-high-yield-savings-account-is-now-available-offering-a-4-point-15-percent-apy%2F">a high-yield savings account (4.15%) via its Apple Card</a>. So does Apple want to be a bank? The answer to that question is an emphatic: No!Banks are not fun businesses to run from a technical perspective. There are lots and lots of regulations and red tape to consider. Also, valuations for banks are not nearly as generous as they are for tech companies.When the Apple Card faced <a href="https://www.businessinsider.com/apple-card-faces-investigation-over-gender-discrimination-allegation-2019-11">allegations over gender discrimination</a> in regards to its credit limits, it was Goldman Sachs, Apple's banking partner, that initially took the heat, not the tech gaint. (A regulatory investigation <a href="https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202103231" target="_blank" rel="noopener">didn't find any evidence of fair lending violations.</a>)So at a time when many consumer-facing fintechs are struggling to get by, <a href="https://www.businessinsider.com/fintech-acquisition-targets-buyers-deals-vc-investors-bnpl-neobanks-2023-4">or potentially getting acquired at a discount from their previous sky-high valuations</a>, Apple keeps chugging along with what's essentially a side-hustle for its already massive tech business. The possibilities are endless when you consider the reach Apple has. <a href="https://affiliate.insider.com?h=227f47007371fd33cb51317b85515111440177bcba6e1d12372138b1585081ad&amp;postID=643d638c1aaf4e2b0b1df9d6&amp;site=bi&amp;u=https%3A%2F%2Fwww.apple.com%2Fnewsroom%2F2023%2F02%2Fapple-reports-first-quarter-results%2F" target="_blank" rel="nofollow noopener sponsored">In early February</a>, Apple reported it had surpassed 2 billion active devices! That's some distribution channel! (Yes, I realize that's devices, not users, but you get the point.)The irony is that the business Apple created is partially what one of its key partners — Goldman Sachs — wanted for itself.Goldman had grand ambitions of taking over Main Street with Marcus, <a href="https://www.businessinsider.com/whats-going-wrong-at-goldman-sachs-marcus-consumer-bank-unit-2022-8">but the business never really hit its stride</a>. And now, as Goldman <a href="https://www.businessinsider.com/goldman-sachs-restructuring-david-solomon-mark-nachmann-winners-2022-10">tries to salvage what's left of its consumer dreams</a>, Apple continues to roll on.To be sure, Goldman might argue this is all part of its plan. As it <a href="https://www.businessinsider.com/goldman-sachs-investor-day-david-solomon-addresses-consumer-banking">eases away from going direct to consumer</a>, and the bank's Platform Solutions division looks to stop its cash burn, the new pitch is all about Goldman as a behind-the-scenes partner. What's a better test case than doing it with one of the biggest companies in the world?What's not clear, though, is what type of terms Goldman gets for serving as the back-end partner partner. Banking-as-a-Service is a crowded field, and while the Goldman name holds a certain cachet, I'm not sure it's worth that much in this particular space.Lucky for us, Goldman reports earnings today. <a href="https://www.businessinsider.com/top-tech-executives-driving-innovation-paypal-visa-mastercard-stripe-plaid-2023-2">Click here to read more about the top eight executives shaking up payments, including a key leader at Apple Pay.</a>In other news:<a href="https://www.businessinsider.com/recession-ceo-pay-larry-fink-blackrock-asset-manager-aum-2023-4"></a><div type="image" title="BlackRock CEO Larry Fink, pictured in November 2022, gesturing while sitting in front of a blue background." height="4175" width="5567" msid="99588390" hostid="261" sizebytes="981922"></div>2. Hey everyone, come hear how good we sound! Insider's <a href="https://www.businessinsider.com/author/dakin-campbell">Dakin Campbell</a> (aka the guy whose Goldman stories I am always linking to) sat down with Russell Sherman for his Press Profiles podcast to discuss what it's like covering Wall Street's top executives. <a href="https://open.spotify.com/episode/0c1xhVb00KVZYO1HavxC8j?si=pQ1ZEiwJT8yk88nwgy1t0A&amp;nd=1">Give it a listen here.</a>3. Helping expats get some credit. Getting a credit card in a foreign country can be a nightmare. Insert Yonder, which offers credit cards with rewards for a monthly subscription fee. <a href="https://www.businessinsider.com/yonder-london-fintech-startup-raises-new-funding-from-vc-investors-2023-4">Here's the pitch deck it used to raise its most recent round. </a>4. Inside the passing of the guard at KKR. As KKR cofounders Henry Kravis and George Roberts look to pass the torch to co-CEOs Joseph Bae and Scott Nuttall, the PE giant is also in the midst of reimagining itself, The Wall Street Journal reports. <a href="https://www.wsj.com/articles/dont-call-them-barbarians-at-the-gate-b12ad495">More on that shift here.</a>5. Wall Street executives — they're just like us! BlackRock CEO Larry Fink saw his pay cut 30% last year amid the market uncertainty of 2022. Fink took home only $25.2 million. <a href="https://www.businessinsider.com/recession-ceo-pay-larry-fink-blackrock-asset-manager-aum-2023-4">He's not alone, as other tops CEOs saw their pay shrink. </a>6. Here's why your boss really wants you back in the office. It's not because of company culture. It's not because of commercial real estate. It's not even because they think you're slacking off. Insider's Aki Ito breaks down why bosses hate WFH. <a href="https://www.businessinsider.com/work-from-home-return-to-office-sexism-women-bosses-employees-2023-4">In short, they think it's for sissies.</a>7. Wells Fargo vs. unionization. Broader support of unions in recent years, along with successful campaigns at other companies, has bank executives worried about internal unionization efforts, <a href="https://www.bloomberg.com/news/articles/2023-04-17/wells-fargo-privately-worries-union-resurgence-could-reach-its-workers-next?srnd=premium&amp;sref=5xrDvJna">Bloomberg reports</a>. For more on Wells Fargo employees' union drive, <a href="https://www.businessinsider.com/wells-fargo-bank-employees-union-2022-6">click here.</a>8. The case for Andy Saperstein as future Morgan Stanley CEO. The head of the bank's $4.5 trillion wealth management business is shaping up to be a prime candidate to take over for James Gorman, <a href="https://www.bloomberg.com/news/features/2023-04-16/morgan-stanley-ceo-race-why-andy-saperstein-is-the-man-to-watch?srnd=premium&amp;sref=5xrDvJna">Bloomberg reports.</a> We've also got more on <a href="https://www.businessinsider.com/wall-street-banks-succession-plans-goldman-sachs-jpmorgan-morgan-stanley-2023-1">why all the big banks could make a leadership change this year.</a>9. Get ready for grilling season. Contrary to what some might say (<a href="https://www.businessinsider.com/grilling-food-meat-is-bad-cook-inside-instead-2021-7">even at this very publication</a>) grilling food rocks. But if you want to switch things up, maybe a pellet grill is more your speed. We've got you covered. <a href="https://www.insider.com/guides/home/best-pellet-smoker">Here are five of the best.</a>10. Inside the <a href="https://www.businessinsider.com/what-is-raya-elite-celebrity-dating-app-rich-famous-2019-12">Raya</a> of gyms. Brooklyn's Ghost is a high-end luxury gym requiring an application and in-person interview. Founded by a former investment banker (because of course it is), Ghost memberships can cost up to $300 a month. <a href="https://www.insider.com/review-ghost-gym-williamsburg-luxury-fitness-new-york-city-2023-4">Here's Jordan Parker Erb's review, including pictures, of the exclusive gym.</a>Curated by Dan DeFrancesco in New York. Feedback or tips? Email <a href="mailto:ddefrancesco@insider.com">ddefrancesco@insider.com</a>, tweet <a href="https://twitter.com/dandefrancesco">@dandefrancesco</a>, or <a href="https://affiliate.insider.com?h=b83e78f6bb45aba7034c3baf1ec66d1b6c1d3afa26264bdb8604d5b9f2351262&amp;postID=643d638c1aaf4e2b0b1df9d6&amp;site=bi&amp;u=https%3A%2F%2Fwww.linkedin.com%2Fin%2Fdan-defrancesco-29b12449%2F">connect on LinkedIn</a>. Edited by Jeffrey Cane (tweet <a href="https://twitter.com/jeffrey_cane">@jeffrey_cane</a>) in New York and Hallam Bullock (tweet <a href="https://twitter.com/hallam_bullock">@hallam_bullock</a>) in London.

Apple continues to quietly build on its fintech ambitions

<ul><li>The highest number of <keyword id="35520" type="General" weightage="100" keywordseo="personal-loans" source="Orion">personal loans</keyword> are disbursed in less than ₹5,000 ticket size. </li><li>Digital loan disbursements continue to rise - disbursement volumes grew by a whopping 153% over the last year. </li><li>In consumer durable <keyword id="6362287" type="General" weightage="80" keywordseo="loans" source="Orion">loans</keyword>, loans of ticket sizes between ₹5,000- ₹10,000 witnessed the highest growth of 493% from April 2021 to April 2022.</li></ul>In the first half of the current financial year, <keyword id="8058517" type="General" weightage="20" keywordseo="digital-lenders" source="Orion">digital lenders</keyword> disbursed a total of ₹2.74 crore loans through their balance sheet according to a <keyword id="2461546" type="General" weightage="20" keywordseo="fintech" source="Orion">Fintech</keyword> Lending Report by<a href="https://www.equifax.co.in/"> Equifax Credit Information Services Private Limited</a> (ECIS), a leading credit bureau, along with<a href="https://faceofindia.org/"> Fintech Association for Consumer Empowerment</a> (FACE), an industry association and self-regulatory body for fintech lenders. Digital loan disbursements continue to rise and disbursement volumes grew by a whopping 153% over the last year with the disbursement value growing by 62%. The Fintech Lending Trends report uncovers the lending patterns for the fast-moving fintech lending industry. It aims to contribute to market players making informed decisions and expanding prudently and responsibly. Personal loans remain the dominant product, accounting for 96% of the total disbursement volume and 66% of the total value. The highest number of personal loans are disbursed in less than ₹5,000 ticket size. When it comes to consumer durable loans, loans of ticket sizes between ₹5000-₹10,000 witnessed the highest growth of 493% from April 2021 to April 2022. Maharashtra, Karnataka, Telangana, Tamil Nadu and Andhra Pradesh are the top five states for digital loans accounting for a total of 54% of the total disbursement value. Andhra Pradesh and Telangana see the highest growth of digital borrowing at 87% and 67%, respectively. Nanaiah Kalengada, managing director, ECIS and country leader - India &amp; MEA, Equifax, says, "Fintech lending industry in India has gained significant importance in recent years due to providing access to credit to a larger population and offering alternative borrowing options to the customers.” Says Sugandh Saxena, CEO at FACE, "A robust regulatory framework for digital lending safeguarding customer interests and concerted actions to address illegal digital lending apps create a much favorable ecosystem for digital lending. Data from the<a href="https://faceofindia.org/assets/ResourCecenter/FACE-Equifax-FinTech-Lending-Trends-Vol-I-H1-FY-2022-23.pdf"> </a>report validates the fintech lending role in distributing ‘sachet loans’ to the mass market and bringing them to the formal credit fold, expanding their credit footprint. Looking at the developments this financial year, including multi-fold business growth, the industry is in good spirits to be a force of good in our customer’s journey for progress with roots nurtured with inclusion, innovation, customer-centricity and compliance.” SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/people-have-to-be-comfortable-with-the-idea-that-they-need-to-reskill-and-upskill-for-career/articleshow/98303764.cms">People have to be comfortable with the idea that they need to reskill and upskill over the course of their career: Mohan Lakhamraju, Great Learning</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/green-jobs-like-sustainability-managers-environmental-consultants-esg-analysts-growing-in-india/articleshow/98304119.cms">India Inc. sees 81% annual increase in green jobs in January: foundit</a>

Personal loans remain the dominant Fintech product, accounting for 96% of the total disbursement volume: Equifax and FACE

<ul><li>India is now being recognized as one of the largest fintech unicorn ecosystems, home to 21 fintech unicorns.</li><li>Growing adaptation of technology, higher disposable income and young population is aiding the growth of financial technology which has big players like <keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword>, <keyword id="1763236" type="General" weightage="20" keywordseo="cred" source="Orion">Cred</keyword>, <keyword id="3711711" type="General" weightage="20" keywordseo="simpl" source="Orion">Simpl</keyword> etc.</li><li>Fintech growth in sectors like agriculture, retail, health and property technology will also accelerate the growth.</li></ul>The Indian fintech market is expected to grow ten times and have assets to the tune of $1 trillion asset under management by 2030, says a report by Chiratae Ventures and EY. This growth will come on the back of government initiatives such as Digital India, Smart City, the development of UPI, the report says. Growth will be driven by the digital lending market, which is expected to grow to $515 billion in book size by 2030 and a revenue of $200 billion. “India is now being recognized as one of the largest fintech unicorn ecosystems, home to 21 fintech unicorns as of March 2022,” says the report titled ‘$1 Tn India FinTech Opportunity’. Growing adaptation of technology, higher disposable income and young population is aiding the growth of financial technology which has big players like Paytm, Cred, Simpl, <keyword id="2777173" type="General" weightage="20" keywordseo="razorpay" source="Orion">Razorpay</keyword>, Instamojo, Lendingkart and many others. Popularity of ‘<keyword id="4585897" type="General" weightage="20" keywordseo="buy-now-pay-later" source="Orion">buy now pay later</keyword>’ <a href="https://www.businessinsider.in/personal-finance/news/how-does-buy-now-pay-later-schemes-work-and-what-are-the-penalties-here/articleshow/87788629.cms">(BNPL) </a>products and services has also fueled the growth of the industry both in B2C and B2B payments space. Just like credit cards, <a href="https://www.businessinsider.in/personal-finance/news/how-does-buy-now-pay-later-schemes-work-and-what-are-the-penalties-here/articleshow/87788629.cms">BNPL schemes </a>allow you to buy products beforehand and pay the total amount in installments. According to TC Meenakshi Sundaram, co-founder and vice chairperson at Chiratae Ventures, fintechs have innovated for the underserved financial markets. The ecosystem has been supportive too. “These include fast-growing digital adoption and mobile penetration on the back of the cheapest data rates in the world offered by private telecom players, to enabling regulatory environment coupled with world-leading digital infrastructure (Aadhar, UPI, BBPS etc), and structural reforms and initiatives (GST, TReDSetc.),” said Sundaram. Fintech has also been growing in sectors like agriculture, retail, health and property technology. The report states that payments, digital lending, wealthtech, insurtech, and neo-banking will all be contributing to growth in the fintech space with agri+fintech and prop+fintech considered to be big bets. “India is recognized as a strong fintech hub globally and is increasingly becoming a talent destination for fintech businesses,” said Rajiv Memani, chairman and managing partner at EY India. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/not-only-foreign-investors-but-indian-retail-investors-also-seem-to-be-losing-faith-in-markets/articleshow/93457258.cms">Although FII flows have reversed, retail investor confidence remains low thanks to macro concerns</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/goa-hotels-had-the-most-occupancies-and-they-earned-more-too-says-report/articleshow/93456193.cms">Goa hotels had the most occupancies and they earned more too, says report</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/only-12-delhi-covid-19-cases-are-in-official-records-says-report/articleshow/93446996.cms">Only 12% Delhi Covid-19 cases are in official records, says report</a>

Indian fintechs to grow 10x and manage assets worth $1 trillion by 2030

Happy Saturday!Special-purpose acquisition companies — aka "blank-check" companies — are having a moment on <keyword id="42111" type="COMPANY" weightage="60" keywordseo="Wall-Street">Wall Street</keyword>. The investment vehicles have raised more than $40 billion already in 2020. Just this week, <a href="https://markets.businessinsider.com/news/stocks/playboy-spac-frenzy-go-public-ipo-nearly-decade-private-2020-10-1029640163#">Playboy joined</a> the frenzy with plans to go public via a SPAC merger, and a <a href="https://markets.businessinsider.com/news/stocks/spac-etf-first-blank-check-begins-trading-stock-market-nyse-2020-10-1029640817#">new SPAC ETF started trading</a>. The development of the SPAC market over the past few years is often credited to sponsors of the vehicles — the people who launch them in return for a stake in the merged company once the SPAC has found a willing seller. But there's also an entire ecosystem of <a href="https://www.businessinsider.com/top-spac-underwriters-law-firms-investors-blank-check-volume-fees-2020-9">advisers, salespeople, and lawyers</a> increasingly pitching blank-check companies to investment platforms and wealthy people.Dakin Campbell, Jack Newsham, and Alex Morrell took a look at the power players who are helping drive the SPAC boom. You can read the full story here: <h3><a href="https://www.businessinsider.com/top-spac-underwriters-law-firms-investors-blank-check-volume-fees-2020-9">16 bankers, lawyers, and capital providers helping engineer a $40 billion blank-check craze that's fast-tracking companies to public markets</a></h3>More below including this year's <a href="https://www.businessinsider.com/rising-stars-wall-street-investing-trading-dealmaking-2020-9">rising stars of Wall Street</a>, our exclusive <a href="https://www.businessinsider.com/david-simon-property-group-profile-retail-real-estate-malls-jcpenney-2020-9">Goldman Sachs org chart</a>, a deep-dive on Simon Property Group CEO <a href="https://www.businessinsider.com/david-simon-property-group-profile-retail-real-estate-malls-jcpenney-2020-9">David Simon</a>, and details on <a href="https://www.businessinsider.com/kpmg-layoffs-1400-employees-professional-services-struggle-job-cuts-2020-9">layoffs at KPMG</a>. <h3><a href="https://www.businessinsider.com/rising-stars-wall-street-investing-trading-dealmaking-2020-9">Meet 2020's rising stars of Wall Street </a></h3><a href="https://www.businessinsider.com/rising-stars-wall-street-investing-trading-dealmaking-2020-9"></a>From helping launch game-changing groups to having a hand in restructuring entertainment giants like AMC, BI's rising stars stood out as the leaders for tomorrow.In addition to being at the top of their class, these finalists are also trailblazing in new areas like data science and machine learning, executing on sustainability goals, and paving the way for a more diverse and equitable workforce by speaking out and taking part in recruiting efforts.<h4>You can see our <a href="https://www.businessinsider.com/rising-stars-wall-street-investing-trading-dealmaking-2020-9">full list here</a>. The rising stars also shared their best career advice —<a href="https://www.businessinsider.com/rising-stars-wall-street-best-career-advice-success-investing-trading-2020-10">you can check that out here</a>.</h4><h3><a href="https://www.businessinsider.com/david-simon-property-group-profile-retail-real-estate-malls-jcpenney-2020-9">How real-estate titan David Simon is reshaping America's malls</a></h3><a href="https://www.businessinsider.com/david-simon-property-group-profile-retail-real-estate-malls-jcpenney-2020-9"><div type="image" title="david simon profile 2x1" height="876" width="1752" msid="78463375" hostid="261"></div></a>Simon Property Group CEO David Simon has for years reached beyond his core business, buying retailers that occupy his company's mall spaces and branching out into other areas like e-commerce in an effort to embrace change.Dan Geiger spoke with more than a dozen people who know and have worked with Simon to learn more about the press-shy mogul and his efforts to turn around a moribund retail industry. <h4><a href="https://www.businessinsider.com/david-simon-property-group-profile-retail-real-estate-malls-jcpenney-2020-9"> Here's how Simon is facing a make-or-break moment with a $2 billion bet on troubled JCPenney.</a></h4><h3><a href="https://www.businessinsider.com/goldman-sachs-org-chart-top-executives-leadership-management-operating-committee-2020-9">The power structure at Goldman Sachs</a></h3><a href="https://www.businessinsider.com/goldman-sachs-org-chart-top-executives-leadership-management-operating-committee-2020-9"><div type="image" title="Goldman Sachs org chart 2x1" height="834" width="1668" msid="78463380" hostid="261"></div></a>Goldman Sachs <a href="https://www.businessinsider.com/goldman-sachs-reshuffles-divisions-consumer-asset-management-2020-9">announced</a> on Tuesday that it was shaking up its divisions and creating new units for consumer and wealth management as well as asset management. Those changes will take effect Jan. 1. But even before that, Goldman CEO David Solomon had made significant changes to the company's leadership team, including expanding the size of the management committee, moving a number of senior executives into chairman roles, and solidifying reporting structures. <h4>Dakin Campbell mapped out more than 100 of the bank's top execs. <a href="https://www.businessinsider.com/goldman-sachs-org-chart-top-executives-leadership-management-operating-committee-2020-9">You can see the existing power structure here.</a></h4><h3><a href="https://www.businessinsider.com/kpmg-layoffs-1400-employees-professional-services-struggle-job-cuts-2020-9">KPMG axes jobs across tax, audit, and advisory </a></h3><a href="https://www.businessinsider.com/kpmg-layoffs-1400-employees-professional-services-struggle-job-cuts-2020-9"><div type="image" title="KPMG" height="2986" width="5973" msid="78463383" hostid="261"></div></a>As Samantha Stokes reported this week, KPMG is the latest professional-services firm to lay off employees or reevaluate pay as the coronavirus pandemic has upended the economy and caused clients to rein in spending.<h4><a href="https://www.businessinsider.com/kpmg-layoffs-1400-employees-professional-services-struggle-job-cuts-2020-9">We have all the details, including how KPMG is also cutting some tax workers' pay.</a></h4><h3><a href="https://www.businessinsider.com/jpmorgan-loyalty-program-collateral-frequent-flyer-financing-debt-airlines-hotels-2020-9">JPMorgan inks a deal to let airlines and hotels tap their loyalty programs for capital</a></h3><a href="https://www.businessinsider.com/jpmorgan-loyalty-program-collateral-frequent-flyer-financing-debt-airlines-hotels-2020-9"><div type="image" title="business travel airport" height="1041" width="2083" msid="78463386" hostid="261"></div></a>As Dan DeFrancesco reported this week, one of the top investment banks in the world is partnering with a startup that helps companies use their loyalty programs to raise capital from institutional lenders. <h4><a href="https://www.businessinsider.com/jpmorgan-loyalty-program-collateral-frequent-flyer-financing-debt-airlines-hotels-2020-9">Here's why it's a game-changer for cash-strapped companies.</a></h4><h3>Careers</h3><ul><li>Here's how much investment-banking associates at Morgan Stanley, Goldman Sachs, JPMorgan, and other big banks <a href="https://www.businessinsider.com/how-much-investment-banking-associates-earn-in-salaries-and-bonuses-2020-9">are getting paid</a></li><li>Wall Street's rising stars from firms like UBS, Fidelity, and Apollo share their <a href="https://www.businessinsider.com/rising-stars-wall-street-best-career-advice-success-investing-trading-2020-10">best career advice</a></li><li>Inside this year's <a href="https://www.businessinsider.com/private-equity-2022-associate-recruiting-sg-partners-timeline-banking-analysts-2020-9">private-equity drama</a>: how one PE headhunter went rogue on a pact made by the industry's power players to delay recruiting young talent</li></ul><h3>Banking</h3><ul><li>A <a href="https://www.businessinsider.com/palantir-asana-direct-listing-date-pricing-morgan-stanley-citadel-securities-2020-9">Morgan Stanley trading desk</a> headed up by a former NFL quarterback played a central role in Palantir's and Asana's public debuts</li></ul><h3>Real estate</h3><ul><li>Donald Trump has for years been pressuring one of New York's largest landlords for the <a href="https://www.businessinsider.com/trump-tried-sell-stake-manhattan-san-francisco-offices-vornado-taxes-2020-9">chance to cash out a $800 million stake</a> in 2 skyscrapers</li></ul><h3><keyword id="2461546" type="PERSON" weightage="60" keywordseo="FinTech">Fintech</keyword></h3><ul><li>The <a href="https://www.businessinsider.com/crowdz-barclays-smb-invoice-financing-networks-pitch-deck-series-a-2020-9">21-page deck that Crowdz</a>, a startup that helps small businesses <keyword id="25455" type="ORGANIZATION" weightage="100" keywordseo="finance">finance</keyword> their invoices, used to nab an extra $2 million during a 'perfect storm' for growth</li><li>TikTok megastar Charli D'Amelio <a href="https://www.businessinsider.com/step-no-fee-digital-bank-teens-launches-charli-damelio-tiktok-2020-9">just partnered up with a digital bank for teens</a> backed by Nas and Will Smith. Here's how the startup is trying to grab Gen Z's attention.</li><li>Inside the <a href="https://www.businessinsider.com/occ-payments-charter-brian-brooks-fintechs-banks-state-regulations-fintech-2020-9">regulatory turf war</a> over red-hot payments startups that has the big banks and the OCC at odds with each other</li><li>Gusto, a $3.8 billion small-business payroll startup, is muscling in on fintechs like Earnin by <a href="https://www.businessinsider.com/gusto-earned-wage-access-payroll-platform-personal-finance-startup-2020-9">adding a feature to let workers get paid early</a></li><li>$4.3 billion Marqeta is <a href="https://www.businessinsider.com/marqeta-launches-tokenization-as-a-service-for-digital-cards-2020-9">targeting a wider range of customers for its digital cards</a> with a new 'tokenization-as-a-service' push</li><li>$7.1 billion Credit Karma is <a href="https://www.businessinsider.com/personal-finance/credit-karma-launches-checking-account-gen-z-underbanked-2020-9">launching its first checking account</a>, and execs think the new offering could be a key data source for recommending loans</li></ul><h3>Alt data</h3><ul><li>Wall Street's <a href="https://www.businessinsider.com/geolocation-data-hedge-funds-banks-alternative-data-2020-9">interest in geolocation data</a> has never been higher thanks to the pandemic. 7 alt-data experts explain how it's used and what comes next.</li></ul><h3><keyword id="6355587" type="ORGANIZATION" weightage="60" keywordseo="Legal">Legal</keyword></h3><ul><li>New York's top judge is <a href="https://www.businessinsider.com/new-york-diploma-privilege-law-bar-exam-coronavirus-calfornia-washington-2020-9">sticking with an online bar exam</a> even as complaints of tech issues mount and other states let law grads skip the test and still practice law</li><li>We're tracking which top law firms are delaying their first-year associate classes. Here's what you need to know about <a href="https://www.businessinsider.com/law-firms-delayed-first-year-fall-start-dates-fall-2020-7">new start dates, pay, and benefits</a>.</li></ul><h3>Odd lots</h3><ul><li><a href="https://www.businessinsider.com/rent-runway-ceo-jenn-hyman-profile-during-covid-crisis-2020-9">Rent the Runway CEO Jennifer Hyman</a>, one of the most successful female founders, is fighting to save her company</li><li>Red Bull names its first Black CMO and <a href="https://www.businessinsider.com/layoffs-new-cmo-red-bull-following-black-lives-matter-controversy-2020-9">shakes up its marketing team</a> after internal Black Lives Matter controversy</li><li>Meet the man who <a href="https://www.businessinsider.com/wealthy-americans-buying-passports-to-bypass-covid-travel-restrictions-2020-9">hooks up ultrawealthy Americans with the 2nd passports</a> they need to leave the country. An island in the Caribbean is his most in-demand location.</li><li><a href="https://www.businessinsider.com/30-leaders-under-40-changing-healthcare-2020-9">30 young leaders</a> who are forging a new future for healthcare in the pandemic's shadow</li></ul>

Wall Street rising stars — SPAC power players — KPMG layoffs

Ashneer Grover, who was sacked along with his wife Madhuri Jain Grover by fintech platform BharatPe over alleged financial irregularities, has slammed the Reserve Bank of India (<keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword>) over its latest directive to non-bank prepaid payment instruments to stop loading credit lines onto their products. In a tweet, Grover said that "not allowing loading of pre-paid instruments through credit is aimed at protecting bank's lazy credit card business from Fintech's potent BNPL (buy now pay later) business". "It's a flex move by banks -- rent seeking. But market is market and regulation will eventually come around to what market needs," he added. The RBI, in its latest one-page circular, has disallowed non-bank PPIs from loading credit, and several such startups and firms have already stopped customers' transactions on their prepaid cards to avoid penalty. The banking PPIs include HDFC Flexipay, ICICI PayLater, HDFC Payzapp, SBI YONO and others, along with several UPI-driven platforms like Paytm, PhonePe, Google Pay and Amazon Pay, etc. "The PPI-MD (PPI-master direction) does not permit loading of PPIs from credit lines. Such practice, if followed, should be stopped immediately. Any non-compliance in this regard may attract penal action under provisions contained in the Payment and Settlement Systems Act, 2007," according to the RBI directive. Grover is reportedly in talks with US-based private equity companies to raise up to $300 million for a new startup. "Today I turn 40. Some will say I've lived a full life and experienced more things than most. Created value for generations. For me it's still unfinished business. Time to disrupt another sector. It's time for the Third Unicorn," he had posted last week. SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/business/startups/news/rejected-i-banks-manufacturers-for-not-having-enough-women-on-board-says-mamaearth-founder/articleshow/92429742.cms" style="">Rejected i-banks, manufacturers for not having enough women on board says Mamaearth founder</a> <a class="tout-title-link" href="https://www.businessinsider.in/cryptocurrency/news/indias-crypto-players-bullish-on-hiring-say-crash-is-just-a-phase/articleshow/92425464.cms" style="">India’s crypto players bullish on hiring; say crash is just a phase</a> <a href="https://www.businessinsider.in/tech/apps/news/google-has-termed-slice-as-a-harmful-app-recommending-users-to-uninstall-it/articleshow/92429265.cms" style="">Slice payments app spies on photos, audio records and call history, says Google</a>

Ashneer Grover slams RBI over recent mandate

These 44 pitch decks helped fintechs disrupting trading, investing, and banking raise millions in funding

<ul class="summary-list"><li>The firesale of Credit Suisse to UBS is putting the banking world on high alert.</li><li>Shiny fintechs that disrupted banking will need to reassure investors about their business models.</li></ul>The swallowing of Credit Suisse after a historic week for the banking sector should raise the question for a batch of highly valued startups that want to disrupt finance: Am I next?The saga that culminated last week in <a href="https://www.businessinsider.com/credit-suisse-ubs-offers-up-to-billion-rescue-deal-report-2023-3">the $3.25 billion rescue of Switzerland's second largest bank</a> by rival lender UBS all started after an off-hand remark from Saudi National Bank, Credit Suisse's largest shareholder, suggesting it had little intent of upping its holding.A crisis in confidence ensued, sparking a huge share and bond price drop and customer outflows. <a href="https://www.bloomberg.com/news/articles/2023-03-17/credit-suisse-investors-see-bail-in-risk-for-82-billion-bonds" target="_blank" rel="noopener">A $54 billion loan</a> from the Swiss National Bank wasn't enough to keep Credit Suisse afloat, and UBS stepped in.It is the latest sign of a financial system that is cracking, after the <a href="https://www.businessinsider.com/insider-today-svb-silicon-valley-bank-rokt-oil-2023-3">collapse of Silicon Valley Bank</a>.Credit Suisse suffered idiosyncratic problems, such as <a href="https://www.businessinsider.com/credit-suisse-ceo-tidjane-thiam-steps-down-after-spying-scandal-2020-2">a spying scandal involving former CEO Tidjane Thiam</a>, as well as crises relating to its relationships with hedge fund Archegos Capital and financial group Greensill Capital. Its delayed annual accounts showed it was around $8 billion in the red, and ultimately it fell after a collapse in investor confidence.But it is clear <a href="https://www.businessinsider.com/svb-decimated-24-hours-digital-banking-trump-regulatory-rollbacks-2023-3">that sentiment can make or break a bank</a>. And that should have lessons for the shiny, fast-growing companies that want to be banks, and have only known an era of easy venture capital money and low interest rates."There's already a lot of soul searching about what fintech business models are," says Paul Rolles, an ex-Morgan Stanley managing director and cofounder of money-management service HyperJar.<h2>The party times are over </h2>The <a href="https://www.businessinsider.com/27-top-fintech-startups-in-europe-according-to-vcs-2023-2">fintech sector</a> has been something of a darling of the startup world post-2008. The promise of technology-led businesses to shake up a staid, failed industry attracted huge amounts of investment.But now these startups — worth $158.9 billion in 2022, <a href="https://www.imarcgroup.com/fintech-market" target="_blank" rel="noopener">per data firm IMARC Group</a> — face their first real questions about the viability of their business models.A vigorous chase for customers during the low-interest rate boom years of the 2010s allowed fintechs to focus on growth without too much focus on profit. Recent developments might sharpen investors' minds, as they have elsewhere in the tech world.Rolles believes the banking issues of the past couple of weeks are as much about confidence as intrinsic issues. "Back in 2008, the whole bank run was triggered off by US subprime mortgages but actually the amount of crap in the US subprime market wasn't that big," Rolles said. "It was the fact that it triggered a lack of confidence and therefore a bank run."An <a href="https://www.businessinsider.com/silicon-valley-bank-svb-first-social-media-bank-run-2023-3">SVB-style bank run</a> on neobanks, whose central customer base has been consumers, is unlikely. Some of these newer players <a href="https://www.businessinsider.com/svb-rivals-pitch-startups-on-moving-money-out-bank-2023-3?r=US&amp;IR=T">have benefited from the SVB collapse</a> by seeing new demand from startups seeking to diversify where they hold their money.Even so, there's a huge difference between being "a really good consumer marketing company" that attracts users and a fully regulated bank that acts as a massive lender. Firms such as <a href="https://www.ft.com/content/444e9971-16f0-48ba-b4b6-ad970cc116c1" target="_blank" rel="noopener">buy-now, pay-later firm Klarna</a> and neobank Monzo <a href="https://www.ft.com/content/ec37b0b9-58da-4bd6-9b15-4ad176dfbb97" target="_blank" rel="noopener">are not recently profitable</a>, for example. Though global investment into fintech hit $75.2 billion last year, <a href="https://www.cbinsights.com/research/report/fintech-trends-2022/" target="_blank" rel="noopener">per data from CB Insights</a>, it marked a 46% drop in funding levels seen in 2021. In a 2022 funding round, Klarna took an 85% valuation haircut. Dutch VC firm Finch Capital predicted in October 2021 that <a href="https://www.businessinsider.com/european-fintech-is-breaking-records-but-clouds-on-the-horizon-2021-10?r=US&amp;IR=T">the fintech bubble was set to burst</a>."Everyone knows it's quite expensive to run a digital neobank," Rolles said. "The business model is what, exactly? Is it deploying deposits really effectively and lending? I don't think a lot of them have done much lending yet."As Rolles notes, "actually building a lender" by dealing with a regulator, managing liquidity, hedging derivatives and overseeing short and long-dated assets is hard work. "Maturity transformation is an art and a very complicated game," he added. "It's never been clear that those skills are being developed in the fintech sector." Correction — March 20, 2023: An earlier version of this article said Klarna was not yet profitable. It was consistently profitable until 2019.

You Searched For "fintech players" and got 12 results

Loan sanctioning has gone digital, but recovery still needs a 'feet on the street' approach, says RBI Deputy Governor

ANI

RBI Governor asks fintech players to form self regulatory organisation

PTI

Fintech SRO aims to enhance credibility of sector, promote ethical conduct

Anagh Pal

RBI releases draft framework for Fintech sector self-regulatory organisations

IANS

Fintech player Zaggle files IPO papers with Sebi to mobilise funds via IPO

PTI

Apple continues to quietly build on its fintech ambitions

Dan DeFrancesco

Personal loans remain the dominant Fintech product, accounting for 96% of the total disbursement volume: Equifax and FACE

Anagh Pal

Indian fintechs to grow 10x and manage assets worth $1 trillion by 2030

Bhakti Makwana

Wall Street rising stars — SPAC power players — KPMG layoffs

Meredith Mazzilli

Ashneer Grover slams RBI over recent mandate

Kritti Bhalla

These 44 pitch decks helped fintechs disrupting trading, investing, and banking raise millions in funding

Shannen Balogh,Anita Ramaswam…

Credit Suisse's $3.2 billion cut-price sale signals an ongoing crisis that could expose unicorn fintechs

Hasan Chowdhury

Popular Keywords

Buying Guides