Alternative Lending, are we Over Writing the Under Writing.??
Wish to Pick your Thoughts on #AlternativeLending and Banks’ Competence to handle that
The business is growing & Technology firms are getting into it through #FinTech door. Is it increasing because ?
1. FinTech companies are increasing/growing and have better reach
2. Banks have gone back/technically not able to cater to those people due to non fitment / Not able to design alternate #CreditAssessment and Underwriting system.
If that is the case then how Some FinTech companies funded through some mechanism by same bank are able to finance exactly those customers?? Whether you finance a customer from any source, Credit Worthiness should not change as per the platform (Bank /FinTech /MFI etc) unless you charge premium to make him credit worthy & ” #OverWriteTheUnderWriting ”
3. Banks are cooperating with FinTechs to become their back end partner & allowing them to lead while they manage the backend
4. Newbie, FinTech companies have better Distribution than established banks that they are able to charge premium
5. Or no body understands what is happening and everybody is selling everything and whoever gets the client for that transaction is happy.
Please add your Points and Thoughts to it for everybody’s learning..