Recently Google’s payment app Tez was rebranded as Google Pay. Tez was Google’s UPI platform for money transfer and from its launch in September last year, there have been 55 million downloads on playstore, with 22 million active users and 750 million transactions with annual run rate of with $30 billion. With such an astounding success rate for a payment app, one will wonder if there was a real need for rebranding unless there was something new to offer. The answer to that is loans. Google has now partnered with banks to disburse pre-approved loans on the Google Pay platform. While the current partners are private sector banks such as HDFC, Kotak Mahindra, ICICI, and Federal Bank, it is unknown whether Google will extend this partnership to NBFCs as well.
The Supreme Court’s verdict on Aadhar has put the scope of Aadhar-based eKYC in jeopardy. The ruling meted out by the Supreme Court restricts private firms from using Aadhar services to verify a person’s identity and deemed such acts as unconstitutional. While the Apex Court’s ruling can be seen as a bid to protect individual privacy, the complete curtailment is a big blow to several service providers that relied on Aadhar-based eKYC to establish an individual’s identity.
The biggest fintech festival of the year lived up to its name. The Singapore Fintech Festival of 2018 was a grand commemoration of the global banking and tech industry. As a festival regular, we look forward to what new the festival offers each year and we weren’t disappointed.
SME lending in India has caught the attention of Bankers and FinTechs alike. Lending to SMEs is expected to increase up to 23% by 2023, and data will be the driving force behind this growth. The opening up of alternative data sources and the ease of access to APIs have made credit assessment robust and easier for lenders and customers. Initiatives like GST(N) and Bharat Bill Pay System (BBPS) can be utilised to harness the digital footprint of the prospective customers as well as set up a formal assessment system in place. Leveraging data and analytics will be the game changer for lenders as it will help them disburse more loans and manage risk better.