Digital Lending
Fintech players are transforming the lending business. But scaling up will be a challenge.


- Jun 10, 2017,
- Updated Jun 14, 2017 11:52 AM IST
Pune-based Early Salary offers a one-month bridge loan if you are broke at the end of the month. Bengaluru-based ZestMoney lends you money to buy consumer durables products on e-commerce portals on equated monthly instalments, or EMIs, without credit card. KredX, another start-up, has an online discounting platform for entrepreneurs where they can raise money by handing over their unpaid invoices. And Bankbazaar is an online marketplace - the way Amazon is for mobile phones and consumer goods - where one can shop for the best deals on home, car and other retail loans.
These players represent a new trend where fintech players, after flooding transactions/mobile wallet segments, have started making inroads into the organised lending business too, thanks partly to banks not doing enough to innovate and reach out to small ticket size and underserved markets. But will they be able to scale up and challenge banks, or grow by joining hands with banks and sticking to their niche areas?
Pune-based Early Salary offers a one-month bridge loan if you are broke at the end of the month. Bengaluru-based ZestMoney lends you money to buy consumer durables products on e-commerce portals on equated monthly instalments, or EMIs, without credit card. KredX, another start-up, has an online discounting platform for entrepreneurs where they can raise money by handing over their unpaid invoices. And Bankbazaar is an online marketplace - the way Amazon is for mobile phones and consumer goods - where one can shop for the best deals on home, car and other retail loans.
These players represent a new trend where fintech players, after flooding transactions/mobile wallet segments, have started making inroads into the organised lending business too, thanks partly to banks not doing enough to innovate and reach out to small ticket size and underserved markets. But will they be able to scale up and challenge banks, or grow by joining hands with banks and sticking to their niche areas?