Expert Views from fintech players on RBI allows fintechs to access credit bureaus
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Below are perspectives of Fintech Players on RBI allows fintechs to access credit bureaus
Vinay Bagri, Co-founder & CEO, Niyo – neo-banking fintech
It's a very progressive move by RBI. It significantly helps customers because Fintechs, like us, are building innovative products to solve for consumer credit and direct access to bureau along with alternate data will further enhance the capabilities of fintechs to innovate and simplify credit offerings.
Gaurav Chopra, Founder & CEO, IndiaLends – marketplace for credit products (personal loans, credit cards)
At the outset, we interpret the notification to be a positive step for credible players in the market. We’re carefully reviewing the notification along with our partner bureaus, and as a responsible and customer centric service provider, we’ll like to comment on the matter once there’s absolute clarity on the notification’s impact for all stakeholders, including our customers.
Rajesh Mirjankar, MD & CEO, Kiya.ai – bankingtech and regtech company
The initiative of RBI to permit Fintechs to access credit information is in the right direction. Fintechs will continue to play an important role in financial inclusion of the masses and to provide Fintechs the credit information will help in quicker and better credit decisions. Many of the Fintechs have partnership with or funding from banks for origination of credit based accounts. With the access to data for Fintechs during origination, banks will be able to take more informed decisions on underwriting the credit. It will also be useful if credit bureaus take inputs from Fintechs on other data parameters captured in their processes so as to evolve newer models of generating credit scores.
Rohit Agrawal, CEO, Mcapital – lending arm of Mswipe (one of India’s largest financial services platform for SMEs) SME lender
The recent move from RBI will help Fintech’s and other service providers (who facilitate credit within their ecosystem in partnership with banks / NBFC’s). This will enable faster turnaround of credit requests especially for small ticket loans / BNPL where lending is purely based on a certain criterion with no / limited manual intervention.
Tarun Soni, Head of Finance, Bizongo
The International Finance Corporation (IFC) has stated India’s credit gap to be Rs.25.8 trillion, while the formal credit supply addresses only Rs.10.9 trillion worth of MSME financing needs. While Banks and NBFCs have inculcated technology to address the credit gap, there are still several issues that delay loan disbursals. At Bizongo we welcome this move as it allows us to provide our partner banks and NBFCs with real time information through credit bureaus. This expedites the decision making process by reducing the time in the exchange of information, enhancing transparency and also minimising manual intervention. We believe this will act as a great catalyst for the growth of supply chain financing in India. Bizongo partners with over 20 Banks and NBFCs and has enabled INR 1200 crores of loans for MSMEs to meet their working capital needs.
Prabhtej Singh Bhatia, Co-founder, Falcon welcomed the move and said
“It is a step in the right direction. Customer onboarding for credit and lending related products has been a challenge for the fintech industry in recent times. This will facilitate a real-time approval process and thus ensure seamless onboarding of customers. We are very excited as this gives a fillip to embedded finance products such as Buy Now Pay Later (BNPL), which is one of Falcon's key offering in the market.”
Priti Rathi Gupta, Founder, LXME – India’s first financial platform for women
This will be a good boost to Fintech’s assessment and ability to lend. However, it’s important to note that Fintech’s cater to a demography, that may not have a credit score currently, but in the long run as digitisation permeates deep into the country, the credit information will be more widely captured.
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