Trends in NBFC Business Model that makes it next-generation ready | Swarit Advisors
Channel: Bada CFO
Date: 2020-05-06

Non-Banking Financial Companies have outperformed the traditional lenders, banks in the sphere of credit deployment. NBFC leverage technology-driven solutions to penetrate credit facilities in the remote sectors. 

Trends in #NBFC_Business_Model that makes it next-generation ready
Here is the list of NBFC trends that will help this business model sustain for an extended period in the financial market.
https://swaritadvisors.com/learning/what-are-the-latest-trends-in-nbfc-business-model/

Partnership with Fintech Companies 
The collaboration of NBFC’s with #Fintechstartups creates a win-win situation for both the parties. Since it boosts the lending capabilities of NBFC’s and provides a competitive edge to Fintech.

Video KYC 
The industry seeks to remove identity theft cases through numerous digital video KYC checks. In the method of #VideoKYC, the investors shall have to upload their identity proofs like address proof, PAN Card, photograph and signatures via Mobile Application or website. Once, the investors upload all the documents, they need to start real-time video recording by using the front camera of their Smartphone and display a hard copy of each document for at least 10 seconds. 

Automation
NBFC can harness automation to speed up the lending procedure by predetermining certain steps to process a Loan Application. Automation can bring radical changes in the functioning of Non-Banking Financial Companies.

Alternative Credit Scoring
NBFC will adopt alternative credit scoring based on non-financial data, as many citizens of India still do not have adequate financial footprint data. NBFC can utilize the data of such transactions to check the credit score.

Risk Mitigation 
The non-banking financial lenders should protect against information leaks. Therefore, the NBFC lenders need to periodically assess IT controls which are responsible to maintain information integrity.

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https://swaritadvisors.com/learning/what-are-the-latest-trends-in-nbfc-business-model/ 

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