55-75pc of loans will be booked digitally by 2025 fintech expert

    Kolkata, Aug 30 (PTI) Digital onboarding for loans
will increase to 55-75 per cent of the total credit
disbursement in the next five years from about 20 per cent
now, a financial technology expert has said.
    Between 2015 and 2020, around 20 per cent of credit
disbursements were technology-driven and were extremely
successful in retail and small business loans, said Akhil
Handa, head fintech, partnerships & mobile banking and digital
lending department, Bank of Baroda.
    "In the next phase of digital lending between 2020 and
2025, it will go beyond tier I and II cities. By 2025, an
estimated 55 to 75 per cent of loans that get booked will be
digital in nature," Handa said in a recent Indian Chamber of
Commerce organised webinar.
    Out of the 75 million MSMEs in the country, only 18
million are digitised now while the majority would be so in
the next five years and COVID-19 pandemic would be a major
driver for change, he said.
    Infrastructure enablers such as digital land registry,
account aggregators, and Open Credit Enablement Network (OCEN)
which connects lenders and marketplaces will come into place
and the linchpin of the entire digital lending journey will be
analytics, Handa said.
    Fintech has grown by 100 per cent in the last one
year, Equifax Credit Information Services managing director K
M Nanaiah said in the webinar.
    Fintech companies, in association with banks and
NBFCs, have played a key role in popularising digital lending.

(This story has not been edited by THE WEEK and is auto-generated from PTI)