P2p lending services – Market DCD http://market-dcd.com/ Just another WordPress site Thu, 06 Jan 2022 07:58:24 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://market-dcd.com/wp-content/uploads/2021/06/icon-2021-06-29T174343.113.png P2p lending services – Market DCD http://market-dcd.com/ 32 32 What is ALCX cryptography? How does ALCHEMIX cryptography work? https://market-dcd.com/what-is-alcx-cryptography-how-does-alchemix-cryptography-work/ Thu, 06 Jan 2022 07:58:24 +0000 https://market-dcd.com/what-is-alcx-cryptography-how-does-alchemix-cryptography-work/ Blockchain-based digital currencies are redefining not only money, but all aspects of it. Money finds new dimensions when institutions that provide credit services to borrowers come into play. In the blockchain world, these loans and borrowings are a bit different. Instead of a fiat currency like the US dollar, blockchain credit services have crypto assets […]]]>

Blockchain-based digital currencies are redefining not only money, but all aspects of it. Money finds new dimensions when institutions that provide credit services to borrowers come into play.

In the blockchain world, these loans and borrowings are a bit different. Instead of a fiat currency like the US dollar, blockchain credit services have crypto assets underpinning the deal. This new segment within distributed ledger technology is commonly referred to as decentralized finance or DeFi.

What is Alchemix DeFi?

Like any other blockchain-based project, Alchemix aims to solve a particular problem by harnessing the potential of peer-to-peer architecture.

The platform claims to allow users to borrow, while earning collateral. The process is simple: A borrower uses their cryptocurrency as collateral to secure a quick loan, but these secured crypto assets generate what the platform calls “yield-backed tokens.”

Alchemix is ​​a project with the concept of yield farming at its heart. Yield farming generally refers to any crypto asset staking holder or lending stake in order to earn rewards in the form of new crypto assets.

Read also: Know how Bitcoin compares to the US dollar

How does the Alchemix platform work?

The platform describes itself as a “self-paying debt” facilitator.

This is achieved when the user of the platform deposits a DAI token – a stablecoin – to get an advance or loan from the platform. The deposited DAI coins generate “synthetic” stable coins, known as alUSD. The new stablecoins thus generated can be exchanged for DAI in a 1: 1 ratio, as claimed by Alchemix.

Read also: Cryptocurrencies vs stock market: which may be the best choice for 2022?

What is ALCX cryptography?

Most blockchain projects have a governance token in order to let users decide how it works.

ALCX is the same governance token used within the Alchemix platform. Users can stake their possession of ALCX coins to participate in the vote. This essentially gives powers to all users of the platform, and in turn differentiates Alchemix from mainstream financial institutions which have a centralized entity in charge of governance.

ALCX Crypto Price Trends

Currently trading at nearly $ 340 per token, ALCX has a market cap of over $ 320 million. Although ALCX is not one of the best cryptos by market cap, the volume of transactions is quite high. Over US $ 100 million worth of ALCX coins have been traded in the past 24 hours.

Image Description: ALCX crypto price

Data provided by CoinMarketCap.com

ALCX Price Prediction

In March 2021, the price of an ALCX token exceeded US $ 2,000. The digital currency ended 2021 with a price of almost US $ 240.

One week in 2022, and ALCX has gained immense value. It came at a time when major cryptos like Bitcoin and Ether are trading at moderate price points. The appreciation in price of ALCX can be attributed to DeFi’s growing stature. If blockchain enthusiasts keep up the momentum for blockchain-based credit, ALCX could surpass at least $ 400 by the end of the first quarter of 2022.

Read also: The best crypto winners of 2021, and some underperformers

At the end of the line

ALCX, a governance token, found support in 2022. The token lost enough value in 2021, but since the Alchemix platform is on DeFi loan, with yield farming features, ALCX may steal the interest of crypto enthusiasts.


Source link

]]>
Dvara E Registry concludes a new partnership with Monexo Fintech https://market-dcd.com/dvara-e-registry-concludes-a-new-partnership-with-monexo-fintech/ Tue, 04 Jan 2022 12:02:04 +0000 https://market-dcd.com/dvara-e-registry-concludes-a-new-partnership-with-monexo-fintech/ This partnership will particularly benefit beginning farmers in the region who depend on informal sources of credit. Dvara E-Registry announced a new partnership with RBI Authorized Peer-to-Peer Digital Lending Marketplace Monexo Fintech Pvt Ltd. Through this partnership, Monexo and Dvara E-Registry will provide loans to farmers in Jajpur, Dasarthpur and Korai Blocks of Odisha. As […]]]>

This partnership will particularly benefit beginning farmers in the region who depend on informal sources of credit.

Dvara E-Registry announced a new partnership with RBI Authorized Peer-to-Peer Digital Lending Marketplace Monexo Fintech Pvt Ltd. Through this partnership, Monexo and Dvara E-Registry will provide loans to farmers in Jajpur, Dasarthpur and Korai Blocks of Odisha.

As part of this partnership, Dvara E-Registry will provide its services as a commercial correspondent to Monexo, including identifying creditworthy farmers and covering the sanction, disbursement and recovery of short-term agricultural loans to smallholder farmers in rural areas. identified areas of Odisha. This partnership will particularly benefit beginning farmers in the region who depend on informal sources of credit. These farmers will be identified through the Agricultural Producer Organizations (OPA) that Dvara E-Registry engages through Doordrishti.

Doordrishti, a mobile and web-based platform developed by Dvara E-Registry, enables farmers, FPOs and partner institutions to leverage traditional and alternative data to digitize farmer and FPO land, business business and provide them with specific agricultural and crop-specific products and services. KhetScore, an AI-based farm score developed by Dvara E-Registry, leverages remote sensing data from multiple satellites and enables remote multidimensional assessment of historical and simultaneous farming activity.

Commenting on the partnership, Sanjay Mansabdar, Founder and CEO of Dvara E-Registry, said, “We are very happy to partner with Monexo to be able to provide agricultural finance opportunities to high net worth individuals. By leveraging the Doordrishti platform and KhetScore, our advanced underwriting technology based on remotely sensed data, we are making significant progress towards the integration of agricultural finance, which we believe is a key driver of growth for small farmers.

Mukesh Bubna, CEO of Monexo Fintech Private Ltd, said: “India is primarily an agriculture-based economy, so this partnership has helped Monexo create a very healthy and diverse asset class for lenders in our market. . Monexo wants to channel urban cash flows to rural markets. This is a win-win solution for clients of our platform who want to create social impact while achieving high returns and for borrowers who need cash during critical periods of their crop life cycle. . The technology driven awareness in this segment by Dvara E-Registry is creating a positive long term impact in the rural market, and we are very happy to be a part of this journey.

About Dvara E-Registry: Dvara E-Registry is an agfintech startup that creates a digital platform to improve access to agricultural services, both financial and advisory, for all actors in the chain. agricultural value. The startup is a holding company of Dvara Holdings (formerly Dvara Trust) and is part of the Dvara Venture Studio cohort that supports entrepreneurs working for large-scale systemic change in financial inclusion. Dvara E-Registry has been named one of the 2021 Inclusive Fintech 50 laureates for its work supporting the financial inclusion of smallholder farmers.


Source link

]]>
Digital Financial Services – Risks to the Consumer https://market-dcd.com/digital-financial-services-risks-to-the-consumer/ Sun, 02 Jan 2022 08:41:58 +0000 https://market-dcd.com/digital-financial-services-risks-to-the-consumer/ In 2015, CGAP (the Consultative Group to Assist the Poor, a global partnership of 34 leading organizations seeking to advance financial inclusion) identified various risks facing mobile money users, including ” inability to transact due to network / service unavailability, insufficient agent liquidity, complex user interfaces, low customer recourse, non-transparent fees, various frauds targeting customers […]]]>

In 2015, CGAP (the Consultative Group to Assist the Poor, a global partnership of 34 leading organizations seeking to advance financial inclusion) identified various risks facing mobile money users, including ” inability to transact due to network / service unavailability, insufficient agent liquidity, complex user interfaces, low customer recourse, non-transparent fees, various frauds targeting customers and privacy and protection of inadequate data.

The increase in digital penetration in countries has been exploited by financial services to improve the financial inclusion and inclusive development status of the country. Simply put, digital financial services (DFS) refers to all financial services that depend on digital technologies for their delivery and consumption. DFS is mainly demanded by the younger generation due to its lower costs, high speed and availability of more suitable financial services. New entrants to the financial sector including fintech companies, neo-banks, peer-to-peer lending platforms, online lenders, e-commerce platforms, social media providers are now the main players in DFS. Banks, insurers and asset managers are also expanding their financial services through digital platforms.

Newly emerging digital products and distribution channels have transformed consumer risk exposure, primarily for inexperienced and vulnerable DFS users. Due to demonetization (in India), the Covid pandemic, the use of digital finance has increased rapidly. In India, UPI payment systems are widely accepted and growing well, they recorded 17.9 million digital transactions per month in 2016, increased to 1.3 billion per month in 2020. The increase in volume and the value of digital transactions has also increased the possibility of digital fraud. ; the most common are data misuse and fraud.

These encompass mobile app fraud where scammers create spoofed mobile apps and trick mobile users into using their bank details to make payments, receive payments, get government grants, etc. mix the personal information of several people; biometric identity breach and theft of human physical or behavioral data; algorithmic bias, which can occur when a computer program creates biased results or discriminates against particular groups of people; and authorized push payment scams, which occur when a customer is forced to transfer money to a fraudster’s account under the guise of being a real beneficiary.

The widespread reach of digital technologies and the modularization of the financial services industry have made matters worse. Other risks to consumers, such as SIM swap fraud, aggressive marketing and debt collection practices, data breaches and poor dispute resolution, have compounded the problems in the financial ecosystem. Recent reports from TransUnion highlighted that a 28.32% increase in the share of suspected fraudulent digital transactions was attempted in India between April 2020 and March 2021. The report also mentioned that the highest share of fraudulent digital transactions alleged originated from Mumbai, Delhi and Chennai. .

RBI, SEBI and other governing bodies of financial transactions in India are working to strengthen the procedures and policies related to DFS. Along with all the technical guarantees used by DFS providers, it is high time that DFS users were aware of these risks and paid close attention to transactions on digital platforms. Strong passwords with multi-factor authentication are recommended to protect financial transactions.

Users should be vigilant when they receive an unsolicited SMS / call mentioning the account blocking warning and requesting KYC details. They should know that the KYC update will never be done through a third party app, the same should only be provided to bank card or card issuers. One should be very careful when posting personal information on social media platforms or responding to phishing emails as this information can be used for SIM card exchange where the fraudster can access OTPs consumer, financial accounts and card alerts on the victim’s phone. Fraud can also take place through information published on C2C websites. The scammer can show interest in the targeted victim’s product and call them to show their intention to send money to purchase the product. In order to receive money into the account, they can request an OTP received on the victim’s phone.

Along with all of these security measures, setting a transaction limit on cards and savings account can also help provide protection against online or offline financial forgery. Banks can also allow customers to turn their debit and credit cards on and off, rather than blocking it once, then all the paperwork and institutional formalities to get a new one. You can temporarily turn off your cards when they are not in use.

Consumers should keep in mind that in addition to their convenience, they use financial services; DFSs have an important role to play in helping governments reach businesses with emergency cash. It provides financial services to people for whom banking and financial services are not accessible. This can generate transparency in income and expenditure and can create credible information about the economic situation of people. However, the development of the infrastructure to increase the accessibility of the mobile network and the Internet is another essential prerequisite for the growth of DFS. It has become an inseparable part of the world today. It is important that financial regulators, telecommunications operators and the central payment system authority ensure the best risk management for all consumers. Along with infrastructure, stakeholders should focus their efforts on financial education, financial literacy, and cybersecurity risk awareness. Few countries have included it in the school curriculum as India is largely populated by young people, this step can help everyone.



Linkedin


Warning

The opinions expressed above are those of the author.



END OF ARTICLE




Source link

]]>
Buy now, pay later, it’s now, not later https://market-dcd.com/buy-now-pay-later-its-now-not-later/ Fri, 31 Dec 2021 09:03:41 +0000 https://market-dcd.com/buy-now-pay-later-its-now-not-later/ In retrospect, there are the trends, the seismic changes in the payments landscape that seem “obvious” that we may have spotted a mile away. So think about buying now, paying later: arguably the most significant payments of the past year. The foundations, the tailwinds, were, and are, looking us straight in the face. After all, […]]]>

In retrospect, there are the trends, the seismic changes in the payments landscape that seem “obvious” that we may have spotted a mile away.

So think about buying now, paying later: arguably the most significant payments of the past year. The foundations, the tailwinds, were, and are, looking us straight in the face.

After all, with the economic uncertainty that has been a dominant and constant refrain in the midst of the pandemic, with a growing percentage of America’s population living off paycheck to paycheck – it stands to reason that consumers would adopt a fad. payment linked to the money they have on hand.

The visibility offered by installment payments on budget planning and cash flow management has particularly appealed to consumers who are suspicious or even unable to access traditional credit.

To that end, we could point to a few of the big deals, in the billions of dollars, that have marked the payment giants’ desire to gain a foothold in space. Over the summer, Square struck a $ 28 billion deal to buy Australia-based Afterpay. Affirm bought Paybright. Stripe bought Paystack.

You get the idea: The Stripes and PayPal’s of the world, once payments started, now buy upstarts.

We will get a better idea of ​​how BNPL may have been viewed and used for holiday shopping in the weeks to come.

But as data from PYMNTS has shown, the growing willingness of payment providers to offer the option has led to strong double-digit growth until the start of the season, so there seems no reason to believe that growth does not start to continue to soar. the new Year.

To get a feel for the popularity of BNPL, PYMNTS found that 29 million Americans have used BNPL for at least one transaction in the past year. About a quarter of consumers earning between $ 50,000 and $ 100,000 per year are cut off from traditional credit channels, and 73% of “second chance” consumers who use or would use BNPL would be more likely to shop at a merchant offering this choice of payment. These second chance consumers are desirable, as 65% earn more than $ 50,000 per year, and 30% earn more than $ 100,000.

Do you think that the potential or current consumer of BNPL presents a credit risk? You could think again. The average second-chance consumer is 44 years old and has a FICO score of 662, just 38 points below the average “good” credit score, the data shows.

Read also: A study confirms the romantic correspondence between BNPL and “second chance consumers”

The inherent value of BNPL is that a significant number of users find that spreading payments over time allows them to manage their monthly expenses and avoid fees. In other words, there is visibility inherent in the model.

There are signs that traditional lending, as an industry, is interested in BNPL. At the end of December, the Equifax credit reporting agency is rolling out a plan next year to add Buy It Now, Pay Later (BNPL) plans to credit reports.

The year ended with some turbulence for BNPL, mainly in the form of regulatory oversight. The Consumer Financial Protection Bureau (CFPB) is currently investigating the issuance, reimbursement and fee policies of Buy Now, Pay Later (BNPL) brands. There are indications that the first trimester can be a bit bumpy.

The 16-page CFPB order states that “the Bureau monitors Buy Now, Pay Later (BNPL) products and consumer use of those products. This ordinance will provide the information necessary to perform such an analysis in accordance with the Congressional mandate that the Bureau monitors the risks to consumers in the offering or provision of financial products or services to consumers, including the evolution of the markets for these. products or services. Affirm, Afterpay, Klarna, PayPal and Zip have until March 1, 2022 to respond.

Read here: CFPB works with global regulators to target BNPL

——————————

NEW PYMNTS DATA: AUTHENTICATION OF IDENTITIES IN THE DIGITAL ECONOMY – DECEMBER 2021

On:More than half of American consumers think biometric authentication methods are faster, more convenient, and more reliable than passwords or PINs, so why are less than 10% using them? PYMNTS, working with Mitek, surveyed more than 2,200 consumers to better define this perception gap from usage and identify ways in which businesses can increase usage.


Source link

]]>
Forbes India – Covid-19: Integrated finance will promote financial inclusion of the next 500 million Indians: Vasanth Kamath https://market-dcd.com/forbes-india-covid-19-integrated-finance-will-promote-financial-inclusion-of-the-next-500-million-indians-vasanth-kamath/ Wed, 29 Dec 2021 17:40:00 +0000 https://market-dcd.com/forbes-india-covid-19-integrated-finance-will-promote-financial-inclusion-of-the-next-500-million-indians-vasanth-kamath/ The emergence of integrated finance has created a market opportunity driven by the rise of non-bank tech companies, estimated to be worth $ 7 trillion globally by 2030. Image: Shutterstock /> In terms of purchasing power parity, India is the third largest economy in the world. However, World Bank data shows that India’s per capita […]]]>

The emergence of integrated finance has created a market opportunity driven by the rise of non-bank tech companies, estimated to be worth $ 7 trillion globally by 2030. Image: Shutterstock

/>

In terms of purchasing power parity, India is the third largest economy in the world. However, World Bank data shows that India’s per capita income in 2019 is one-fifth that of China and one-thirtieth that of the United States. India’s GDP per capita is a quarter of that of its BRICS counterparts.

One of the reasons for this paradox is the serious underpenetration of financial products and services. According to a report by Dr Soumya Ghosh, group chief economic adviser, State Bank of India, India’s household debt-to-GDP ratio rose to 37.3% in 2020-2021. An insurance penetration rate of 4.2% and a total value of financial assets of Rs 263 trillion show that access to financial services has been severely restricted.

Financial services have always been designed from the top down, starting with the rich. After Covid-19, however, the digital adoption of financial services accelerated and penetrated beyond the upper layers, leading to a change in the architecture of services and distribution. Higher cost of service due to high contact models, relationship managers and call centers and more constitute the service architecture while the delivery architecture is made up of an expensive delivery mode with branches and service centers. As digital penetration deepens, with applications and the internet replacing both managers and branch offices, infrastructure will undergo a major transformation than it has already done today. However, the basic idea would be around the design of the product and the service, therefore, the distribution architecture for this would have to be integrated finance.

What is integrated finance?

The integration of financial services into markets and services, especially by non-bank providers, has experienced a significant leap in recent years. The emergence of integrated finance has created a market opportunity driven by the rise of non-bank technology companies, estimated at $ 7 trillion worldwide by 2030. Integrated finance via BaaS (Bank-as- as-Service) allows a business or online retailer to integrate banking software directly into their websites or mobile applications. This incorporation of BaaS while being part of a range of services does not require users to be redirected to third party websites. So, buyers can experience the ease of transactions as they wouldn’t have to enter their card details for every transaction as a business integrates payments on their website. It is because of in-car finance that the installment payment option for online shopping, offering insurance or issuing credit cards has become a daily occurrence.

Each financial product becomes an API or goes through an API-fication of financial products and services on the public and private infrastructure layers. OCEN (Open Credit Enablement Network) is the next big credit disruption.

The central idea of ​​the OCEN is to put in place a framework and protocols that can allow the democratization of credit for the segments that need it most. For payments, UPI, which makes payments at the touch of a button, speeds up payment and settlement processes, providing a great payment experience. There are many instruments that use the internet to distribute financial services, like the BSE StAR MF platform, India’s largest online distribution platform accessible anytime and anywhere, supporting all types of investors such as NRIs, miners and businesses. Then there are the Fixed Deposit APIs, i.e. APIs that make it easy to create, manage and close fixed accounts as well as status checks. InsureTech platforms such as Riskcovry APIs can automate omnichannel insurance distribution. Still others, like smallcase Gateway, help users process stocks, ETFs, and smallcases in the app or on the website.

Beneficiaries of integrated financing

Today, companies across industries, verticals and services are considering and preparing to launch integrated financial services to better serve the business and consumer segments. The availability of such diverse instruments makes it affordable for manufacturers as they can tap into a larger base with API-based distribution while also allowing them to access a financial product or service when they need it. The appeal to businesses lies in its monetization opportunity for applications and distributors who can now engage their customers and add a new line of business to their offerings.

We have seen the benefits of integrated finance unfold before us. The National Payments Corporation of India (NPCI) announced that in September 2021, 3.65 billion transactions worth Rs 6.54.351 crore were recorded. While most transactions on the UPI platform – nearly 81% – are peer-to-peer, suggesting that UPI is replacing cash in the payments ecosystem and therefore leading to further digitalization of the economy, around 19% of transactions are peer-to-merchant. , accounting for nearly 9.96 billion rupees, exceeding both the values ​​of both credit and debit card point-of-sale transactions.

Merchant acceptance has also been a major reason for adopting UPIs as they increase credit eligibility for small traders as all transactions are recorded for lenders. There are channels such as Tala Loans in the Global Scenario that aim to provide immediate access to credit and quick loans to meet the needs of consumers and small businesses.

Integrated finance will be instrumental in bringing the next 500 million Indians into mainstream finance through savings, credit and hedging products.

There is a gap between financial services and end consumers, but technology may be the best driver to bridge it. Quick and hassle-free access to financial services is made possible easily by integrated finance, thus improving customer satisfaction. As the number of non-traditional players entering the FinTech segment increases steadily, we can expect significant growth in the number of direct-to-consumer businesses adopting integrated finance.

The writer is the founder and CEO of smallcase.

The thoughts and opinions shared here are those of the author.


Source link

]]>
Fintech for MSMEs The Changing Face of Financial Inclusion in India-Sameer Chugh https://market-dcd.com/fintech-for-msmes-the-changing-face-of-financial-inclusion-in-india-sameer-chugh/ Tue, 28 Dec 2021 06:13:39 +0000 https://market-dcd.com/fintech-for-msmes-the-changing-face-of-financial-inclusion-in-india-sameer-chugh/ The rapid evolution of point of sale (PoS) systems from a simple mechanical cash register to a digital retail management system is the best example of the disruption fintech can cause in the MSME industry. FinTech – a powerful contraction of finance and technology – has been a huge hit in the Asia-Pacific region over […]]]>

The rapid evolution of point of sale (PoS) systems from a simple mechanical cash register to a digital retail management system is the best example of the disruption fintech can cause in the MSME industry.

FinTech – a powerful contraction of finance and technology – has been a huge hit in the Asia-Pacific region over the past five years and has evolved dramatically during the pandemic. India has developed a vibrant ecosystem for fintech startups to thrive into a billion dollar unicorn and lead quadruple growth over the next decade. India’s traditionally cash-driven economy has not only responded well to fintech innovations, but has also facilitated an enabling environment for companies to discover new products that could potentially shape the future of fintech.

Whether it’s deepening categories, exploring new segments, and empowering other industries, fintech companies are chasing multiple dreams. Most importantly, they realize the vast potential of MSMEs and the impact that small traders can have on the economy if they have the right tools that promote digital inclusion. Today’s FinTech companies are ready to design tailor-made solutions that address any problem and allow MSMEs to reach their full potential.

Fintech for small businesses

Micro, small and medium enterprises present a billion dollar opportunity for fintech. Small businesses are a crucial but often overlooked part of the Indian economy. There are around 63 million MSMEs, of which 99% are small traders. They account for a quarter of India’s GDP, employ a large portion of the global workforce, and complement major industries. However, in countries, MSMEs often face the problem of managing their finances and securing sufficient funding. But, the fintech revolution in India has given millions of MSMEs hope to solve all the problems and ensure rapid growth through a favorable regulatory environment.

The rapid evolution of point of sale (PoS) systems from a simple mechanical cash register to a digital retail management system is the best example of the disruption fintech can cause in the MSME industry. Last mile retailers can automate and manage a range of functions including inventory, sales, customer relationships, and more from a single platform. New mobile point-of-sale systems run on the cloud, support multiple payment methods and offer a range of features such as loyalty programs, catalog design, and more.

SoftPoS and mPoS are among the many disruptions that have made life easier for small traders. Other solutions that have recently transformed MSMEs include transaction delivery, market lending or peer-to-peer lending, payment gateways, digital payment wallets, small note lending, and more. Most of these solutions take advantage of automation, big data or machine learning to solve individual problems. points and provide a vibrant ecosystem.

However, fintech companies have recently looked beyond single innovation to develop all solutions under one window. The idea is to offer a dynamic digital ecosystem that allows last mile traders to expand and grow their business activities using digital tools. Take, for example, the tap and pay service, the most advanced contactless payment method. Merchants can take advantage of the “Tap and Pay” service to accept all kinds of digital payments, including credit / debit, UPI, QR code or digital electronic wallets. The most exciting part is that traders don’t have to maintain physical infrastructure; everything is available on smartphone. It’s like carrying the world of digital payments in your pocket.

FinTechs are also facilitating platforms that allow small merchants to create an online catalog for their products and accept customer orders digitally. These platforms have seen tremendous growth after the 1.0 unlock phase in India, typically driven by customer demand for digital transformation.

FinTech beyond payments

Small traders don’t see fintech as a catalyst for digital payments, but rather as a catalyst for a complete digital ecosystem that can empower them with lending, insurance and banking. Fintechs can revolutionize slow and delayed finance and cash flow processes, opening up many growth opportunities for MSMEs. Over the past few years, there has been a significant increase in code-free APIs that promote a convenient and transparent lending process and potentially increase small businesses’ access to finance.

The growing use of neobanks among MSMEs is another secret ingredient for growth. MSMEs have always had significant concerns about banking functions, including loan repayments and credit financing. Therefore, for a long time, most MSMEs have used informal channels to meet their credit needs. Even those who used banking services were caught in tedious processes that did not meet their financial needs. Neobanks offer transparent, often personalized banking services, taking into account the individual needs of small traders. In addition, neobanks also offer various digital tools for keeping books, filing taxes and invoices, and other relevant financial services.

For fintechs, digital payments have only become a tiny part of a huge digital infrastructure puzzle. Fintechs want to facilitate anything that can improve the customer experience and drive digital financial inclusion. Therefore, they are leveraging the power of artificial intelligence, machine learning, and big data to drive innovation and growth in the MSME sector.

Initially, the main goal of fintech was to leverage technology to improve the delivery of financial services. However, now fintech is starting to change the way businesses and people interact with finance. There will be a sea change in what fintech offered when it first started out and what it is set to deliver over the next ten years. Fintech are realizing the untapped potential of MSMEs and exploring new opportunities to develop solutions that can change the face of Indian small industry.


Source link

]]>
Changes in the regulatory landscape https://market-dcd.com/changes-in-the-regulatory-landscape/ Sat, 25 Dec 2021 04:12:00 +0000 https://market-dcd.com/changes-in-the-regulatory-landscape/ NBFCs were introduced and conceptualized with the aim of complementing the credit intermediation function of banks, diversifying access to financial services and promoting healthy competition in the financial services sector. In order to promote the growth of NBFCs in line with their objective, the regulatory framework for the regulation of NBFCs has been designed on […]]]>

NBFCs were introduced and conceptualized with the aim of complementing the credit intermediation function of banks, diversifying access to financial services and promoting healthy competition in the financial services sector. In order to promote the growth of NBFCs in line with their objective, the regulatory framework for the regulation of NBFCs has been designed on the fundamental principle of less rigorous regulation, against banking companies.

The regulatory design was deliberately crafted to strike a balance between the operational flexibility available with NBFCs to grow at a sustainable pace and to expand the reach of the formal financial services sector into unbanked areas. Gradually, with the growing nature of NBFCs, a nuanced regulatory framework followed.

According to RBI statistics, NBFCs accounted for 12% of the size of banks’ balance sheets in 2010. By 2020, that figure rises to 25%. Over the past 5 years, the balance sheet size of NBFCs (including housing finance companies) has doubled. It was Rs 20.72 lakh crores in 2015, which rose to Rs 49.22 lakh crores in 2020. The other side of the phenomenal growth that the NBFC sector has witnessed has been the failure of a few large NBFCs, leading to insolvencies and liquidity stress in general in the sector.

With the aim of revising and revisiting the regulatory framework governing NBFCs, RBI, in its statement on development and regulatory policies dated December 4, 2020, proposed a regulatory approach at scale related to the contribution to systemic risk. of NBFCs. It released a discussion paper for public consultation on January 22, 2021 and, based on the contributions received, introduced “Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs” in October 2021.

The SBR regulatory framework classifies NBFCs into 4 layers based on the size, activities and perceived risk of NBFCs. These 4 categories are (i) the base layer – this will include NBFCs not accepting deposit below the size of Rs 1000 crore and NBFCs which only act as a peer to peer lending platform, aggregator accounts, non-operational financial holding company or NBFC that do not benefit from public funds and do not have a client interface; (ii) Mid-Layer – this will include all NBFCs accepting deposits, all NBFCs not accepting deposits with an asset size of Rs 1000 crore and above, and NBFCs acting as a stand-alone prime broker, funds of infrastructure debt, core investment companies, housing finance companies and infrastructure finance companies; (iii) Top Layer – it will have NBFCs which are specifically identified by the RBI requiring increased regulatory oversight based on predetermined parameters and rating methodology. In addition, this layer will always be made up of the 10 largest NBFCs in terms of asset size, regardless of any other factor; and (iv) Top Layer – this layer will only be NBFC which in my opinion from RBI has turned into a potential systemic risk.

In addition to categorizing NBFCs into 4 different layers, base size and activities, the SBR regulatory framework has also increased the amount of minimum net held funds for a few categories of NBFCs, and revised the guidelines for NPA classification. by the NBFCs by replacing the old 90-day guidelines for all categories of NBFCs. RBI has proposed a descent path to make the aforementioned changes, in the net minimum fund held and in the NPA classification.
The guidelines introduced several changes in the corporate governance requirements of NBFCs and also pushed for professional expertise in the board of directors, requiring NBFC boards to have at least one member in their board of directors having previous experience of working at a bank or NBFC. In addition, RBI also introduced a cap of Rs 1 crore per borrower on the financing of the subscription to the initial public offering and also introduced a cap for exposure to sensitive sectors, which includes direct and indirect exposure to capital markets and exposure to commercial real estate. , including the sub-limit for the financing of the acquisition of the land.

The SBR regulatory framework will help RBI keep a close watch on NBFCs and allow RBI to take corrective action and intervene at the right time before a particular NBFC becomes a systematic risk to the economy as a whole. Classification and regulations based on size and assets will also ensure that there will not be a deterrent effect on all categories of NBFCs due to rigorous regulatory oversight on a particular category of NBFC.

The SBR regulatory framework will also educate the general public to identify the risk associated with particular NBFCs. Also, it will be interesting to see how RBI keeps stakeholder interest at the forefront when a particular NBFC is moved from the top layer to the top layer.

Although the SBR framework offers a holistic view, it is expected that the detailed regulatory guidance to be introduced will cover the finer aspects recognizing the immense potential of NBFCs.

– Author’s Veena Sivaramakrishnan is Partner and Yugal Jain is Senior Partner, Shardul Amarchand Mangaldas & Co.

(Edited by : Priyanka Deshpande)


Source link

]]>
Terra becomes second largest DeFi protocol, dethrones BSC with TVL by CoinQuora https://market-dcd.com/terra-becomes-second-largest-defi-protocol-dethrones-bsc-with-tvl-by-coinquora/ Fri, 24 Dec 2021 15:01:00 +0000 https://market-dcd.com/terra-becomes-second-largest-defi-protocol-dethrones-bsc-with-tvl-by-coinquora/ Terra becomes second largest DeFi protocol, dethrones BSC with TVL , an open source payment network, is now the second largest blockchain for DeFi protocols in terms of total locked-in value (TVL) in the digital finance space. With that milestone taken, Terra ate Binance Smart Chain (BSC) lunch, as it dethroned BSC with its revolutionary […]]]>

Terra becomes second largest DeFi protocol, dethrones BSC with TVL

, an open source payment network, is now the second largest blockchain for DeFi protocols in terms of total locked-in value (TVL) in the digital finance space. With that milestone taken, Terra ate Binance Smart Chain (BSC) lunch, as it dethroned BSC with its revolutionary TVL in the DeFi space.

Currently, Terra has over 13 DeFi projects running on its platform with amazing performance. In addition to DeFi projects operated as part of the Terra network, a total value of over $ 18.2 billion is locked in on the projects.

When separated, about $ 18 billion TVL is an average of about $ 1.4 billion per protocol. That’s really fascinating, compared to an average of $ 73 million per protocol on the Binance Smart Chain (BSC) which has blocked $ 16.5 billion on 225 protocols since its inception.

In percentage terms, this equates to about over 42,000% increase from previous years, when Terra’s DeFi projects racked up a value of $ 42 million.

Nonetheless, no matter how blistering heat Terra and BSC orchestrate in TVL, rival crypto (BTC) still remains the monster platform that wears the DeFi crown with a whopping $ 152 billion TVL locked to 361 protocols.

Additionally, despite crypto’s fascinating performance, Ethereum appears to be stepping up its predetermined efforts to accommodate more DeFi protocols than ever before.

Notably, DeFi projects primarily rely on a myriad of protocols that use smart contracts. Essentially, they are doing it just with common sense to eliminate any presence of intermediaries or third parties in financial services such as lending, trading and borrowing in the marketplace.

Reminder, this Terra message becomes the second largest DeFi protocol is not financial advice. On the contrary, it only exists to inform and educate about the current performance of the Terra blockchain in the DeFi world.

List of the 13 most compelling DeFi projects on Terra Blockchain

Terra TVL Chart (DeFiLlama)

Now, without further ado, let’s move quickly and discuss some of the terrific DeFi projects and how they performed on the Terra blockchain.

DeFi Projects Performance on Terra’s Blockchain

Anchor protocol

Among the 13 DeFi projects operating on Terra’s network, Anchor takes first place with an astounding TVL. In fact, it tops the list with a high TVL. Exaggeratedly, Anchor has a gargantuan threshold value of over $ 7.7 billion TVL in the market, at the time of writing. This figure made him become first among the crowd.

Anchor’s groundbreaking $ 7.7 billion TVL is estimated to be around 42% of Terra’s overall TVL. Without a doubt, this synergy means that Anchor occupies a huge volume on the Terra blockchain.

However, with this fantastic achievement, it appears to have positively impacted Achor’s user base, currently amassing a huge leap in mainstream traction. Along with its compelling outlook, Anchor users are rewarded through a “diverse stream of staked rewards”, particularly from Proof-of-Stake (PoS) consensus blockchains.

Lido protocol

Next on the list is Stakes’ asset liquidity provider, the Lido Protocol. Lido takes second place right Anchor with $ 5.4 billion from TVL. As Lido features an impressive appearance in TVL, members of his community wish him a good stay to be on top as the second largest DeFi protocol on Terra.

They believe in high regard that Lido has the potential and what it takes to dethrone Anchor as the first DeFi project in the Terra blockchain soon.

Terraswap

In addition, Decentralized Exchange (DEX), Terraswap follows Lido protocol in third place. He came third with a lockdown of the total value increased by 95%. To clarify, Terraswap uses Terra’s smart contracts to deliver smooth and engaging peer-to-peer (P2P) exchanges between its users.

By promoting this, the liquidity of other DEXs becomes shareable by the Terraswap users themselves. In essence, they contribute liquidity in exchange for token rewards. They receive the reward based on the amount of liquidity they provide for each transaction in the market.

StarTerra

Nevertheless, the evolution of Metaverse applications has also contributed to their remarkable presence on Terra. The StarTerra gamified launch pad, which features intuitive sport for NFT integration, has a TVL of $ 21 million. Meanwhile, the decentralized LoTerra lottery protocol follows with a value of over $ 311,000.

LUNA token

Coincidentally, Terra’s total TVL projector arrived at the same time the LUNA token price was in a bullish fashion. Compared to its previous days, the LUNA token rose 54% with a price of $ 83, the all-time high (ATH) this week on CoinGecko.

Commenting on LUNA’s current success, many attribute this success to the token’s sophisticated mechanisms. Others also believe that LUNA’s drastic price spike is due to the influence of some other DeFi applications.

“Terra has recently had great success in terms of both LUNA part price and TVL over its DeFi protocols. The demand for the LUNA token comes mainly from the demand for UST, the algorithmic stablecoin on Terra that is minted using (hot) LUNA, ”according to Spielworks CEO Adrian Krion.

Apart from this reaction, he mentioned that the exchange protocols have no influence on Terra’s TVL, unlike other existing Layer 1 blockchains. Additionally, Krion highlighted how happy he was with how the LUNA tokens managed to stabilize the protocol to drive the yield.

On the other hand, it is worth checking the spelling of the performance of LUNA tokens in the market. Among the odds, the token has become some of the strongest cryptocurrencies with an incredible performance in the crypto space.

Bitcoin (BTC) and Ethereum (ETH) have traded very tightly with a monumental market feel everywhere. (SOL), (AVAX), and LUNA itself have given their cryptocurrency portfolio a competitive edge, as some traders have referred to them as the SoLunAVax trio.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views of CoinQuora. Nothing in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.

Continue reading on CoinQuora


Source link

]]>
Santander speeds up facial biometrics in Brazil https://market-dcd.com/santander-speeds-up-facial-biometrics-in-brazil/ Mon, 20 Dec 2021 23:38:53 +0000 https://market-dcd.com/santander-speeds-up-facial-biometrics-in-brazil/ Santander announced the implementation of facial biometrics to millions of customers as part of the bank’s broader efforts around digital transformation. The technology is being rolled out gradually, and approximately 10 million home and business customers will use mobile banking for transactions invited to register to use the feature. Used in most of the neobanks […]]]>

Santander announced the implementation of facial biometrics to millions of customers as part of the bank’s broader efforts around digital transformation.

The technology is being rolled out gradually, and approximately 10 million home and business customers will use mobile banking for transactions invited to register to use the feature.

Used in most of the neobanks operating in Brazil, smartphone-based facial biometrics are described by Santander as a more secure option for identity verification than fingerprints, which are currently captured at ATMs.

The bank will build its own facial biometrics database, according to Ulian, which is considered more reliable than using a third-party database. Additionally, the technology is expected to improve Santander’s fraud prevention algorithms and enable the instant detection of suspicious transactions.

Technology is also expected to digitize a number of branch activities. For example, high value transfers for the purchase of a car or property require customers in Santander, Brazil to apply for authorization from the branch to prove that the transaction is genuine.

“By opting for facial biometrics, [transaction clearance] can be done remotely by the account holder, ”explains Marcela Ulian, Executive Superintendent of Digital Affairs at Santander Brazil. According to Ulian, the feature is not mandatory and users will have the option to turn off the feature.

Currently, Santander estimates that digital channels account for 92% of all transactions made by retail customers, while 95% of corporate customer transaction volume is done online. The Spanish bank’s Brazilian subsidiary estimates that facial biometrics will lead to a further increase in mobile transactions of 2.5 percentage points for individuals and 5 percentage points for businesses.

The increase in the digitization of transactions will lead to an accelerated reinvention of bank branches, according to Santander, noting that physical spaces “will be increasingly focused on advisory services and specialist guidance of clients, business generation and solving very complex problems “.


Source link

]]>
Peer-to-peer lender SocietyOne sells to ASX-listed MoneyMe in $ 132 million deal https://market-dcd.com/peer-to-peer-lender-societyone-sells-to-asx-listed-moneyme-in-132-million-deal/ Sun, 19 Dec 2021 08:37:30 +0000 https://market-dcd.com/peer-to-peer-lender-societyone-sells-to-asx-listed-moneyme-in-132-million-deal/ ASX-listed fintech MoneyMe hopes to acquire one of the country’s premier fintechs, SocietyOne, in a deal worth $ 132 million. Surprisingly, the merger did not provide an immediate exit for several key lenders from the personal loan market over the past decade. Leading media companies, including News Corp, Seven West Media and Consolidated Press Holdings, […]]]>
ASX-listed fintech MoneyMe hopes to acquire one of the country’s premier fintechs, SocietyOne, in a deal worth $ 132 million.

Surprisingly, the merger did not provide an immediate exit for several key lenders from the personal loan market over the past decade.

Leading media companies, including News Corp, Seven West Media and Consolidated Press Holdings, as well as Australian Capital Equity and Westpac’s venture capital fund, Reinventure, make up approximately 60% of SocietyOne’s share register, and have all voluntarily agreed to sequester their holdings until MoneyMe’s 1H23 Results in February 2023. They will hold between 18.3% and 18.7% of the MoneyMe (ASX: MME) shares issued upon completion of the acquisition in March 2022.

Earlier this year, SocietyOne joined Afterpay on Westpac’s digital banking platform, 10X, and was expected to work on an ASX listing before the deal was announced with MoneyMe on Friday.

The merger implementation agreement was signed this week. MoneyMe shareholders will vote to approve the merger at an extraordinary general meeting on February 1, with the transaction scheduled to close on March 15.

The script-based acquisition is worth $ 132 million based on MoneyMe’s stock price of $ 1.76 on December 16. A series of conditions must be met for the merger to proceed, including at least 92.5% of SocietyOne shareholders accepting MoneyMe shares as consideration and a range of benchmarks around their value before the deal goes ahead. be concluded.

Shareholders representing 79% of SocietyOne’s book have signed the MIA and 78% have elected to receive the Scrip’s consideration.

The merger will be a major boost for MoneyMe, which floated in December 2019 to $ 1.25 a share after raising $ 45 million. Shares surged on opening day of trading to $ 1.72 – close to SocietyOne’s offer price.

MoneyMe shares fell 1.42% from Friday, with tech stocks continuing their pre-Christmas drop to close at $ 1.735.

The merger with SocietyOne will strengthen MoneyMe’s loan portfolio by 72% to $ 934 million, increasing annualized revenue by 63% to $ 146 million. The merger will also generate more than $ 15 million in annual synergies in pre-tax revenue.

MoneyMe CEO Clayton Howes said the deal offers immediate scale benefits and additional income opportunities, as part of the company’s ambition to be Australia’s premier non-bank credit provider. .

“The strategic value is immense for both companies, and we are incredibly excited. The opportunity to accelerate growth and profitability is quickly realized by combining the strengths of the two brands and migrating the operations of SocietyOne to MoneyMe’s Horizon technology platform, ”he said.

“The SocietyOne brand will continue to thrive and benefit from access to MoneyMe’s diverse product set and ability to deliver leading customer experiences.

“We will develop many innovations, including the SocietyOne credit score product which will be offered to MoneyMe customers and the Banking-as-a-Service partnership with Westpac which we will continue to explore. “

If 100% of SocietyOne shareholders accepted the scrips, they would own 30.5% of MoneyMe after the transaction.


Source link

]]>