There is a shift from huge branch network-dominated players to smart Internet or mobile platform-driven banking networks. The change is set to gather speed with the digital initiatives set in motion by the Government and the upsurge of start-ups. These start-ups will compete with banks’ digital initiatives for personal finance to capture the growing customer needs.
Amazon, one of the world’s largest e-retailers, has picked up stake in the Rs.375-crore funding round in online financial market place BankBazaar, a move that highlights the growing investor interest in this segment.
Surge in investments
Personal finance space is seeing a large chunk of entrepreneur interest for quite some time now. Very recently, Apnapaisa.com was acquired by Andromeda and RupeePower.com by Snapdeal. Policybazaar has raised $40 million in April this year.
Other players such as LoanStreet.in, a Mumbai-based loan disbursal platform, Scripbox and Money Wizards are riding high, as they find this market lucrative and filled with huge opportunities. Further, Snapdeal had signed an agreement with Small Industries Development Bank of India (SIDBI). “This is going to economise an entirely untapped population for consumption of services and products,” says Vineet Jain, Co-Founder and CEO, LoanStreet.in, a one-year-old start-up. There have been a surge in investments in this space and a lot of portals have raised venture capital, says Mr. Naresh Daga, CEO, Apnapaisa.com
Online Lending portals are right now divided into two categories
Alternate lending players such as Lending Kart, Faircent, NeoGrowth, etc.
Market places such as BankBazaar.com and LoanStreet.in. and RupeePower
Major disruption in loan market…Continue Reading >>