In the past, governments have often created regulations that stifle innovation and growth. Policy Movesīill Gates is said to have stated that banks don’t matter, but banking does. Two broad areas, in particular, need attention - policy and technology. Fintech firms offer models ranging from peer-to-peer lending to collateral-free finance.

Within digital lending, consumer borrowing and MSME (micro-, small-, and medium-enterprise) lending have seen high growth. Today, digital lending is a major segment of the growing global fintech industry. The success of these firms has prompted banks to follow suit. This makes the lending process faster, more reliable, and more secure.įintech firms have been trailblazers in the sector, offering alternative financing options. Digital lending tools leverage technology and digital offerings to replace manual processes. This minimizes paperwork, saving time and money. How does digital lending differ from conventional lending? It digitizes the entire lending process from application to disbursement. There’s a huge opportunity here, but for now, only select fintech firms appear to be capitalizing on it. A 2018 report by the Boston Consulting Group estimates it will be worth $1 trillion in the next five years.

It could be the single most important development in the field of lending in history.ĭigital lending is a rather undiscovered segment of digital finance. But digital finance has so much to offer besides convenient payment tools. They receive extensive media coverage and support from stakeholders like industry and government. After all, people usually only see these solutions. Unfortunately, many people associate digital finance only with business-to-consumer-focused digital wallets. Digital payment startups and solutions are the latest money-related trend around the world. “Digital finance” is the latest buzzword making the rounds in the finance community. Drip offers a unique trade financing product targeted towards small businesses engaged in cross-border trade by making the underwriting and financing of international B2B transactions seamless. At Drip, he is responsible for defining the strategic direction and managing product, business development, and operations of the company. Forbes Finance Council member Pushkar Mukewar is the co-founder and co-CEO of Drip Capital.

Consumer lending innovation