In 1994, at a Bank Administration Institute conference, Bill Gates famously said, “Banks are dinosaurs, they can be bypassed.” Two decades later, Mr Gates’ observation could very well become a truth with the revolutionary entry of financial technology, popularly known as fintech.
According to Accenture, today’s fintechs have gained one-third of new revenue at the cost of traditional banks. As of March 2020, India is one of the fastest-growing fintech markets in the world – India, along with China accounted for the highest adoption rate of 87% (global adoption rate is 64%) out of all emerging markets in the world. What does this data indicate? Fintech is a revolution, and it is here to stay.
In 2019, the Indian fintech market was valued at INR 1,920.16 billion, but it is expected to reach INR 6,207.41 billion by 2025, expanding at a compound annual growth rate (CAGR) of 22.7% during the 2020-2025 period.
What does this data indicate? Fintech is a revolution, and it is here to stay to make banking easier and faster for consumers.
The Changing Landscape of Lending
The traditional lending system is flawed; it has the liquidity, but it lacks efficient processes and risk management framework.
Getting a loan from a traditional bank has always been a challenge for consumers. The reasons?
- The eligibility criteria are not easy to meet, making it difficult for people to qualify for.
- The paperwork is just too exhausting.
- They take a longer time to process the loan application and make the cash available.
The stifling regulations and the incapability of exploring emerging technologies have created a lot of loopholes, which the revolutionary financial technology has managed to plug in. MoneyTap is one of the fintech companies that have changed the landscape of the lending process.
How is MoneyTap Driving the Fintech Revolution in the Lending Space?
In 2015, entrepreneurs Kunal Varma, Bala Parthasarathy, and Anuj Kacker founded MoneyTap to address the loopholes in the traditional lending space. They introduced India’s first app-based credit line that isn’t tied to any collateral.
Backed by their experience and expertise, MoneyTap has had an impressive journey so far.
- Made strong inroads in more than 40 cities across the country.
- Provided loan to 1.1M individuals
- Disbursed 252K loans
- 10M+ App downloads
Some of the best aspects of MoneyTap that are contributing to the fintech revolution are:
1. More loans to more borrowers
MoneyTap’s easy-to-meet criteria have created opportunities for people who found it difficult to get a loan through traditional banks.
2. Automated underwriting process
While traditional banks still rely on humans for assessing the risk of the profile, MoneyTap has this process automated. This reduces human errors and speeds up the personal loan approval process.
3. Faster and easier approval and funding
MoneyTap is an app-based credit line. This means the entire loan application process happens online. The speed at which this process takes place is phenomenal. Right from loan application to approval to disbursal – everything happens at a tap of a button.
4. Better data utilization
MoneyTap does not only rely on your credit history and your credit score; it uses various other data points to determine your borrowing eligibility and repaying capacity.
5. Solid security system
MoneyTap uses advanced technology to ensure that your personal and financial details are safe and secure. It used security procedures like encryption and website security, to safeguard your sensitive information.
6. Unique product offerings
MoneyTap offers personal loans that can be used for almost anything. The types of personal loans that MoneyTap offers are education loan, medical loan, consumer durable loan, two-wheeler loan, vehicle loan, mobile loan, laptop loan, home renovation loan, and debt consolidation loan.
MoneyTap has made the lending process easier and efficient for you.
MoneyTap offers personal loans in the form of a personal line of credit of up to Rs. 5 Lakh. Since it is a revolving credit line, you can withdraw as low as Rs. 3,000 and as high as your approved credit limit as many times you want, from anywhere and at any time. As long as you keep repaying the borrowed amount, this credit line remains active for life.
The best part of MoneyTap’s personal line of credit is that interest is applicable only on the amount you withdraw from your credit line and not on the entire loan amount approved. For example, if you withdraw Rs. 10,000 from your personal line of credit of Rs. 1 Lakh, you’ll have to pay interest only on Rs. 10,000 that you borrowed and not on Rs. 1 Lakh that is approved. And if you don’t withdraw anything, you are charged no interest.
Benefits of MoneyTap in a Nutshell
- The loan application process is online. So, no long queues at the bank branch.
- With just a button on your smartphone, you can download MoneyTap, apply for a personal loan, and get approved for a loan.
- The loan application process is practically paperless.
- You can easily track your spending on the app.
- You can access money from anywhere and at any time, 24/7.
- You pay interest only on the amount you borrow from your credit line.
Author Bio:
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at [email protected].
