In a first of its kind step, Reserve Bank of Indi (RBI) has awarded its first Online/Digital NBFC licence to Kreditech India.
Kreditech India received the first licence for Online NBFC from RBI to operate as NBFC- Ready, for disruption and launch operations which would be the first of its kind in Indian financial history. Headquartered in Germany, online lender Kreditech aims to disrupt fintech market by assessing the creditworthiness of an individual based on their online footprint before extending loans. Kreditech will offer a broad range of consumer loan products to customers via a very fast and convenient process on web and mobile channels. With new management on board and David Chan as new CEO globally, Kreditech is very promising for India as a market.
“This is a new-age license which has been issued by the regulator wherein major focus has been on a robust – systems and technology and customer grievance redressal mechanism. We would like to sincerely thank the regulators to come up with detailed policy for an on-line digital lender like us which would certainly differentiate us from the competition. This is a big move and would allow to have only serious players in this field over period of time,” says Ashish Kohli MD & CEO, India operations.
Ashish Kohli further added “Presently many NBFCs are focussing on digital space, however, we are differentiated with an absolute digital end-to-end solution right from origination to digital disbursement to collection. Consumer lending space in India is witnessing a major disruptive transformation and the segment is poised to be US$ 1 trillion opportunity over the next five years. Disruption in this segment is created by technology advancement, real-time scoring models that use big data and machine learning algorithms to make better credit decisions.”
Having an NBFC’s license is the first step in the journey for Kreditech India as this will not only allow them to launch innovative product solutions but also try to bridge the gap in the growing consumer lending white space in India. According to Kohli they will be launching the India business in a very systematic and phased manner to support the effort of in laying the foundation for its Credit and Lending business. Kreditech has been able to deploy best in class teams, infrastructure, Artificial Intelligence technology which clearly gives us an edge over growing consumer lending space in India.
The Kreditech India product suite will have highly individualized Consumer loans and will also provide Lending-as-a-service allowing partners to offer customized credit products to their customers.
About Kreditech Holding SSL GmbH Kreditech Holding SSL GmbH, a real-time scoring technology company, based in Hamburg, Germany provides an online big data scoring technology and machine-learning algorithms services to make better credit decisions. We have studied market well and designed the algorithms which are accustomed to Indian consumers and their needs. Our main focus is to ensure customer gets WOW experience and create a win-win proposition for both internal & external customers. We have a vision of building a leading innovative consumer lending NBFC in India by capitalizing on the parent holding company’s cutting-edge platform and local human resource talent.
We are completely focussed in India and it’s the most promising emerging market for us states David Chan, CEO at Kreditech. “Our proprietary credit scoring technology can not only assess an applicant’s creditworthiness in seconds and with higher precision than traditional credit-bureau based systems. There are algorithms build by taking in account various factors into consideration. That way, we are able to offer credit to people quicker and in most efficient way. The Indian market may be a tough one, but we are more than confident that we’ll break into the market successfully.”
Source: Equity Bulls