Earlier, many small and medium enterprise found it hard to get financial help but the entry of fintech players is eliminating these barriers. One such player Rubqiue, an online marketplace for financial products, provides technology enabled end-to-end solution to financing needs of Individuals & SMEs. In an email chat with Karma Negi of The Red Mark, Rubique’s CEO & Founder Manavjeet Singh talks about how companies like theirs are changing the lending ecosystem in the country.
How have fintech startups like Rubique changing the lending ecosystem in the country?
With the global rise of technology, our traditionally cash-driven country has been witnessing a new yield of fintech players emerging in the market, making it easier for individuals, professionals, and small business owners to access the funds they need. They are bringing digitization to make the lending processes more effective, hassle free and beneficial for all stakeholders.
Previously, financial institutions were reluctant towards lending to hundreds of millions of undocumented and unverifiable Indians without significant financial data, finding it a risky business. Technology intervention is eliminating these barriers that have stood as a growth hurdle for decades in this area.
It is emphasizing on revolutionizing the lending business by changing the way it works, through giving loans without collateral or by connecting the consumers or small business owners to financial institutions on a combined platform for quick disbursal of loans. As a result, fintech platforms are able to offer a wide range of loan products and end-to-end loan fulfilment, enabling individuals to focus on their businesses instead of worrying about the cash inflows or funds for business growth and expansion.
What are the advantages or constraints that fintech startups have over a bank?
The biggest differentiation for fintech companies is the speed of execution over banks. Apart from this, Fintech companies have kept customer centric approach to design their products, therefore there is increasing adoption by customers by them.
However, Fintech startups, especially in India, complement banks than competing with them, it is more of a give-and-take relationship between fintech start-ups and banks, both the institutions would want to capitalize upon.
When it comes to SMEs financing gap is huge how are startups like yours bridging the gap?
The new age fin-tech lending marketplaces are poised to revolutionize the country’s financial lending business by changing the way it works, through giving loans without collateral or by connecting these small businesses to financial institutions on a consolidated platform for quick loan sanction.
Such neutral platforms offering a wide range of loan products and end-to-end loan fulfilment allow MSMEs to focus on building their businesses instead of worrying about getting the funding to fulfill the gap in their cash flows or fund their expansion and growth.
There are some providing advisory services to the MSME units and assessing the risk profile of the unit to provide a good profile fit to the banks and lenders basis their risk appetite. They also use algorithms, data analytics to comprehend the credit comfort and evaluate the credit-worthiness of the small business owners so that loans can be disbursed in the shortest time period. Technology facilitates these fintech platforms to ease the complicated lending process, enhance speed, and improve customer experience.
What is the role of technology in your business? What all tech are you employing to make the whole lending process efficient?
Fintech company, Rubique allows lenders and borrowers to discover each other through neutral marketplace platform offering complete transparency. Built on a proprietary matchmaking algorithm, Rubique’s marketplace lending platform offers breakthrough features like – eKYC, real time processing & online approval by direct integration with financial institutions’ systems reducing the processing time significantly.
Unlike other loan aggregator platforms, Rubique focuses on end to end fulfillment through its various technology interventions. The advance technologies used on the platform analyzes hundreds of data points to assess the creditworthiness of customers and provide them the offers they are eligible for. Further, the integration with financial institutions’ systems enables Rubique to provide online approval through real-time processing of an application. Overall, these technology interventions have removed the manual efforts in the loan processing system making it smooth.
Which other tech you see yourself embracing in the near future?
India always follows the global footsteps and in technology adoption too, we foresee an era of advance technologies & innovations like big data, machine learning, data science etc. disrupting some of the industries.
Any advice you want to give to the SMEs when they apply for a loan?
The market is changing and so does the dynamics towards SMEs. SMEs are not only getting an access to finance but they have an option to choose the right product too. Having varied risk appetite of financial institutions, it would be better for SMEs to take help of new age fintech platforms to understand the acceptability of their application & creditworthiness and get faster processing time vis-à-vis traditional lending approach.