Digital micro lending
Technology continues to act as an enabler for innovation and risk mitigation as it becomes a key priority for businesses involved in digital lending. The COVID-19 pandemic has opened a plethora of opportunities for innovation and new learnings, thereby accelerating digital transformation at a significant speed. Businesses are now investing in new technologies that are opening the way for a revolution in payments and provision of financial services.
In today’s world, consumers have become more mindful of large spending, and digital micro lending will thus gain momentum by transforming traditional lenders into intelligent digital lending enterprises as opposed to using legacy systems.
Among the many sectors affected directly or indirectly by the pandemic, digital ecosystems have experienced a significant boost during the ongoing crisis. This is because the spread and severity of Covid-19 has forced people to follow various safety measures like ‘social distancing’ and made them more cognizant of transmission through handling and exchanging cash in person or contracting the virus from their surroundings by visiting Banks or places of interest. Organisations that are more reliant on digital processes for complete loan processing have seen a faster response rate in their business operations. Further, with the increasing availability of API (Application Programming Interface) solutions for user onboarding (eKYC authentication) and loan disbursal, more traditional financial institutions are looking to digitize parts of their loan origination/collection processes.