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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The central bank’s recent order to raise risk weightage for unsecured consumer loans has pushed leading fintech lenders to rethink core business strategies and look for funds.
India’s fledgling digital lending ecosystem is witnessing a reset.
The trigger? In November last year, the central bank ordered all financial institutions to increase risk weights—capital needed to be set aside for loans disbursed—on unsecured personal loans by 25%.
As a result, top fintech lenders Navi Finserv, Axio and KrazyBee, among others—which built their businesses around swift allocation of small-ticket loans—are staring at an uncertain future. To limit the damage, they are rethinking their strategies, desperately looking for a variety of avenues to raise funds and planning new products in the secured credit market instead.
Large NBFCs like …
The UAE is looking at its first public listing of the year while Egypt just delivered a big one; OpenAI’s bugging accused has ties to Saudi Arabia; and other updates from the week.
The acquisition of IDBI Bank puts his Fairfax smack dab in the middle of the RBI’s rules on bank ownership. It must now decide whether to sell CSB Bank or merge the two lenders, neither of which will be easy.
Lenders stand to gain a lot more than borrowers in the current challenging market environment
