Banks are feeling the pressure of growing unsecured portfolios | TWIF 11-11-2023

The RBI's Centre for Advanced Financial Research and Learning (CAFRAL) released a report concluding that fintech could emerge as a substitute for the traditional banking sector in the near future.

Banks have reportedly been making a push for secured loans and gold loans as RBI cautioned banks on the growing unsecured credit portfolios.

PB Fintech, the listed parent firm of PolicyBazaar and Paisabazaar, reported INR 811.6cr revenue (+41% YoY) for the quarter ended Sep, 2023.

Fintech funding in India reportedly declined by 50% MoM in Oct, 2023 to $108mm in total funds raised in the month.

KreditBeereported INR 14,000cr ($1.7bn) in gross loans disbursed on its platform in 2023 (+2x YoY).

Systematic Investment Plans (SIP) in mutual funds grew to a new monthly high of INR 16.9cr ($2bn) in Oct, 2023.

PhonePereportedly crossed 500mm registered users on its platforms. It also restructured its team into business units with separate CEOs.

Namaste Credit, a small business underwriting tech platform, partnered with Microsoft Azure to launch its loan management system on Azure.

Pidilite, an adhesives company, launched lending products for its smaller distributors and retailers.

RBI (central bank): Approved the in-principle payments aggregator license of PayGlobal, a cross border payments company. Notified that Central Recordkeeping Agencies (CRA) will replace pension funds as a Financial Information Provider (FIP) in the account aggregator ecosystem. Raised concerns

Bharat Housing Network, a co-lending platform for housing finance, raised $14.5mm.

Bimaplan*, an insurance infrastructure company, raised $3.5mm.

Rio Money, a credit on UPI startup, raised an undisclosed amount.

Finfra, an Indonesian lending infra company, partnered withXendit, a Southeast Asian payments company, to launch automated collections of revenue based financing products across Indonesia.

MASasked Singaporean banks to implement anti-scam measures and protection against malware attacks for seniors.

Mastercardimplemented e-HKD, Hong Kong's CBDC, payment rails for commercial banking in Hong Kong.

Elevandi, a Singaporean firm by MAS for promotion of its fintech regulations, launched its subsidiary in Japan.

UOB Bank in Singapore faced major service disruptions.

Singapore BNPL Code of Conduct is expected to be implemented by Singapore's BNPL startups by March 2024.

Airwallexreported its Singapore revenue grew 13x YoY and total transaction volume grew 11x YoY in H1 2023. In 2022, its Singapore revenue was $5.4mm.

SEBA Bank, a Swiss crypto bank, received operating license from the regulator in Hong Kong.

YedPay, a Hong Kong payments company, partnered withMastercard to launch one touch payments.

Visalaunched Real Time Visa Account Update (VAU) in Asia Pacific region except Bangladesh, Mainland China and India.

Ripplelaunched a new version of its crypto-enabled cross-border payments solution, Ripple Payments.

NETS Singaporelaunched Merchant Solutions, a payment acceptance suite for merchants.

HSBCpartnered withMetaco to launch digital asset custody services for institutional clients.

The central banks of China, Hong Kong and Macausigned a joint agreement to enhance fintech collaboration and integration between the three countries.

Singlife, a Singaporean financial firm, raised SGD 180mm ($133mm) from Sumitomo Life, a Japanese life insurance company.

LXA, a mortgage finance startup, raised $10mm.