From psychometric tests to gauge creditworthiness to leveraging data analytics, start-ups have opened new vistas in the financial world
From ATMs and cards to internet, cloud computing and open source softwares, technology has been revolutionising the banking industry.
The banking, financial services and insurance (BFSI) industry has gained huge efficiency on the back of after the rise of the fintech sector.
A host of Indian start-ups are looking at new services that were not even thought of a few years back.
FlexiLoans, a technology-based online financing platform, solves the funding problems of SMEs and help them in accessing quick, flexible and adequate funds for growing their businesses.
The company takes psychometric tests of loan seekers to gauge creditworthiness and helps them to speed up the process.
"Only after passing the psychometric test, we help customers get loans on data value (how much money they make on a daily basis) and not face value," Manish Lunia, co founder, FlexiLoans Technologies said.
Due to rising non-performing assets, it was becoming difficult for small businesses to obtain credit.
The company has partnered with platforms like Flipkart, SnapDeal, PayTM, Shopclues, Voonik, Jabong, Lime Road Uber and Ola.
It is witnessing a 30% of loans to borrowers without a credit score and 25% e-commerce loans to female business owners.
Another firm, vPhrase, is an artificial intelligence-based data analytics platform that helps businesses make their reports easier to comprehend. vPhrase's patent-pending platform, Phrazor, analyses data, derives insights and then communicates those insights, in multiple languages.
Neerav Parekh, founder & CEO, vPhrase, is of the view that a lot of work in the financial industry is repetitive and redundant and that will be automated. "Technology can look at a lot of data points more than a human being can go through," Parekh said. vPhrase is working with Unilever, HDFC Bank and HDFC Securities, among other companies.
FinMitra, a goal-based financial advisory and management services firm, helps individuals set financial goals, discover their risk profiles, and find the best investment portfolios in terms of mutual funds and fixed deposits.
"In the technological world, many people are left behind due to financial illiteracy. This includes people form all walks of life, including some software engineers, and that's where our start-ups comes to aid" Bhargavi Sridharan, founder, FinMitra.
Another start-up, S2Pay, enables corporations and financial institutes to leverage technology to create seamless payment processes, enhancing value-chain economics and providing superior end-consumer experience. "Unfolding into Safe to Pay, S2Pay is a secured way of payment even in the absence of internet connection," said Aditya Agarwal and Nirmal Juthani, founder, S2pay. The firm has partnered with Axis and HDFC Bank and is in talks with other key players in the lending industry.
Ajay Ramasubramaniam, director, Zone Startups India (ZSI) believes this is a phase of evolution, more so in the way consumers are adopting technology. "From bank-lending to peer-to-peer lending, from payments being made using coins/notes to mobile transaction or digital wallets and from financial advisors to robo-advisors, the number of people getting benefits out of the fintech services has grown drastically."
Zone Startups India (ZSI) is organising a three-day fintech conclave – Fintegrate Zone 2017– from March 1 to 3.
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