Big Data helping serve small loanees

As it is a known fact that Non-Banking financial companies (NBFCs) play a very important role in providing finance to Micro, Small and Medium enterprises. Hence it is imperative to keep a track on the developments of NBFCs, these institutions have established themselves as a viable alternative to India’s mainstream banks. Technology, of course, has been a core enabler in such financial entities and curating customer engagement & satisfaction. NBFCs are focused on innovation to prepare for a technology-driven future. Location Intelligence has become one of the drivers of their agenda for growth. Location intelligence is a vital parameter for NBFCs to analyse data spatially and garner better insights for any potential market discovery.

“India can become a $30- trillion economy in 20 years if we build deep tech capabilities across sectors, which would allow us to have a trade surplus” said Sridhar Vembu, CEO, Zoho.

New age NBFCs have started harnessing technology and partnership ecosystems across the value chain of lead generation, customer onboarding, credit or loan disbursement and collection. FinTech companies are making use of emerging technologies to build products and services like last-mile reach and delivery, fraud detection and reconciliation for traditional NBFCs. To meet financial requirements, startups and small businesses often seek the services of NBFCs, but NBFCs cannot serve them without proper risk assessment. Investing in new-age technologies and data intelligence is helping new-age NBFCs to expand their customer base with low acquisition costs and thus cater to the emerging MSMEs by providing them capital at lower costs.

Source : eFE Section,by Sudhir Chowdary, Financial Express.