What are these FIn-Techs?

7/9/20232 min read

Now-a-days there have been more news about #FinTech. We tried to understand what they really are and did some research. Here are some highlights which might be helpful:

Major companies/verticals in #FinTech spaces are as below:

a. Cashless Payment : When we transfer payments through PayTM, PhonePe, G-Pay etc without using cash or physical debit card. They uses Bank account of Banks for credit or debit of money in the account. More specifically the continued pace of opening accounts of rural areas and seeding of Aadhar in accounts mostly by Public Sector Banks are the base on which they do the business in rural areas.

b. Lending: NBFCs, licensed and registered; regulated by the RBI to carry out ending business in India within the defined limit including Peer to Peer (P2P) Lending. For Ex.

i. “Lendingkart” provides easy loan through app

ii. “Pine Labs” provides loan from ₹ 25,000 to ₹ 5 lakhs for 90 days

iii. “Shiksha Finance” an Education Loan StartUp provides loan upto ₹ 50,000

Other such names are BankBazaar, MoneyTap, Capital Float, ShubhLoans, BharatPe, FairCent, New Growth, CRED, LoanWalle etc

What is this P2P Lending : Peer-to-peer (P2P) lending is a form of financial technology that allows people to lend or borrow money from one another without going through a bank. One hand, It is a riskier form for an investor while in other hand the loan is too costly for a borrower. Having a very low CIBIl, a customer can get a loan from this FinTech Companies. The P2P firms gives loan such as Personal Loan, Business Loan, Education Loan etc at a very high rate as the borrowers credit worthiness are low. Accordingly, an investor gets attractive return when he invests the funds.

c. Insurance: Insurance FinTech entities enable us to buy insurance plans through mobile apps and websites. Names of some leading FinTech Entities in Insurance spaces are PolicyBazaar, Acko, Digit Insurance, OneAssist, SecureNow.

d. Investment Platforms: These FinTech entities helps to provide investment platforms for investing in Mutual Funds, Share Markets, Bonds etc through app or websites. Examples of such entities as Groww, Upstox, Amigobull etc.

e. Other FinTech entiries are

- “KredX” provides a platform for invoice discounting marketplace platform. It helps businesses get working capital based on the receivable invoices.

- “Credit Mantri” provides credit and financial reports to users based on their credit history. It uses data and technology to help people make better financial decisions. It closely selects a lender and a borrower and helps till end of loan process.

- “Ezetap” provides point of sale (PoS) solution that allows mobile devices to be converted into PoS terminals by connecting a card-reader to the headphone jack of the device.

- “Financepeer” helps to pay the school fees to the School one installment and collects fees in easy 3 to 12 monthly installments.

- “ePayLater” (a ‘Buy Now, Pay Later’ entity)provides credit at the point of sale.