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Paytm, PhonePe make most of digital adoption to disrupt BFSI space

At a time when Covid-19 pandemic has accelerated digital adoption, a slew of startups in the fintech space are disrupting the financial services and banking industry. Alibaba and SoftBank-backed digital financial services startup Paytm has introduced ‘Instant Personal Loans’ on its platform to facilitate access to credit services to the masses. The service can be availed 24X7, round the year even on public holidays and weekends. Paytm is the technology and distribution partner for NBFCs (nonbank financial companies). It would help them expand the reach and adoption of loan services to salaried individuals, small business owners and professionals. The loans would be processed and disbursed by NBFCs and banks. This move will bring new to credit customers into the ambit of the formal financial market. It will also empower individuals from small cities and towns who do not have access to traditional banking institutions.

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