Encouraging banks to collaborate with BBB-rated fintechs can help banks diversify their lending portfolios: Jayesh Jain
FinTech BizNews Service
Mumbai, January 25, 2024: True Balance, India’s one of the leading digital lender providing access to credit for underserved and unserved population of India. It is owned and operated by Balancehero Group and is an RBI authorized Prepaid Payment Instrument (PPI) issuing entity.
Jayesh Jain, Group CFO, Balancehero India, hereby shares his Budget Expectation:
"The interim budget of 2024 offers an opportunity for the government to catalyse innovation and inclusivity within the digital lending sector. We expect that the government will put a greater emphasis on creating a more stable and efficient digital infrastructure for the industry. We also propose that the government establish a Fintech Fund, more specifically for Lendtech. Companies with their own NBFCs should be given priority, and they should receive more affordable debt. To invest in the future of our economy, strategic support for fintech and lendtech is essential. The banks generally avoid lending to fintech companies with BBB ratings. Encouraging banks to collaborate with BBB-rated fintechs can help banks diversify their lending portfolios. This will lead to a more balanced and resilient lending space. Micro-personal loans should also be classified as PSL (Priority Sector Lending) in the budget to support financial inclusion. Furthermore, offering tax incentives to fintech and lendtech entities operating in the personal loans segment would prompt these companies to provide affordable credit to SMEs and individuals in Tier 2, 3, and 4 cities, fostering local economic development. This promotes financial inclusion and aligns with the vision of driving innovation and contributing to a more robust Indian economy, striving towards a USD 5 trillion GDP as envisioned by the honourable Prime Minister."
