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Digital lending, digital lending models, STP model, digital lending…

- - - - better products
        
        underserved clients
        
        faster
        
        fair
        
        efficient
        
        how digital/fintech lending help in accessing underserved markets
        
        limitations of access to underserved markets 1: requirement of physical verification & high costs 2: the underwriting process requires a proof of a steady income or an asset-based collateral. 3.coopatives & relatively small in size & lack of competitiveness to attract suppliers in the markets 4 risk of irrational credit & limited finding opportunities
        
        how fintech lending overcome the limitations
        
        1: utilizes digital footprint as a substitution for physical documents for verification and/or usage of 3rd party data(eg e-commerce ) in order to define eligibility, lowers operational cost compared to conventional lending
        
        2: process of underwriting assessment through digital processing platform with various data points, to indentify typical attributes of interest rates to be charged without prior collateral
        
        3: developed a simple & convenient platform for attracting investments as most of the processes are completed through digital platforms which attracts large numbers of potential lenders
        
        4:customized credit assessment models, which attracts large no. of potential lenders
  - - - product innovation
        
        diversify & specialize business models
        
        wider markets
        
        incre. part. trad. players
  - - - data -non-traditional data sources
        
        improve robustness
  - - - further growth -FinTech ecosystem
        
        convenience (STP) online models and consumers
        
        increase
        
        financial inclusion
        
        mobile penetration
- - - - ease of access
  - - - access data mobile phones - borrower - digital lending platforms
- - - - regulation over lending on line of the National Payments Corporation of India (NPCI)
  - - - evaluate consumers capacity
        
        overcome Over-indebtedness & NPA
  - - - frauds by unauthorised digital lenders
      - digital lending ecosystem
  - - - outline princ. integrity, transparency and consumer protection
        
        clear standards of disclosure and grievance redressal.
- - - - build intelligent customer engagement.
      - inform credit decisions
- - - - help is available 24/7 through chat or call center :