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The Impact Of Technology On Mobile Money Lending Segments
Rahul Sekar, Co-Founder and CTO, Shubh Loans
An aspiring entrepreneur, Rahul is endeavouring to build the next generation technology & analytics platform to bring responsible credit to the underserved.
India always had relationship with driven banking and lending. To open a savings account in the State Bank of India, one still needs `an introduction from a respectable person / a customer of the branch . The local auto garage only gets loans from the neigh-borhood bank, if the branch manager knows the proprietor personally. This seems like a great mitigant of risk. With NPAs soaring, this seems like a reasonable strategy to control bad loans. However, this is only a false comfort. Most of the NPAs come from large accounts greater than INR 1 Crore. What this relationship driven finance has done is that it has made credit very exclusive. Credit cards are seen as a luxury when it needs to be a necessity like mobile phone and in