In the last few years, India has drastically shifted from traditional lending to digital lending. Now the credit facilities are easily accessible digitally with less time and effort. We cannot deny the fact that fintech industry has seen tremendous growth, and rapidly changing face of digital lending, with most of the banks and Non-Banking Financial Companies (NBFCs) becoming digitalized, paperless and cashless.
India has emerged as a home to many fintech hubs in recent years. Out of over eighty unicorns in the country, 15 percent are from fintech industry. This space has gained additional momentum in 2021.
With the rapid digitalization of lending, the Reserve Bank of India (RBI) is all geared up to make necessary amendments in the regulations to protect lending institutions as well as customers. Customer data is very important in digital lending that is used to generate credit scores and make credit decisions. Many lenders use Artificial Intelligence based algorithms to analyze and price credit risk.
