PayTM offers loans to consumers and merchants and is now focusing on the latter for income growth.
A Mobikwik system that manages the eponymous Fintech platform has shown a similar trend. His income from financial services dropped to 730 beliefs in December quarter, against Rs 1,550 crosses per year.
In terms of disbursement, zip loan disbursement via the Mobikwik platform fell to 700 beliefs in December quarter, compared to 2,400 roots of rupees per year.
Mobikwik offers Loans To its customers, where they can obtain personal loans to Rs 2 Lakh for a mandate up to two years.
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Addressing stock market analysts, Upasana Taku, Mobikwik financial director, said that the overall slowdown in the guaranteed credit market has had an impact. PB FintechWho manages the Paisabazaar credit market, credit activity is down approximately 20% in annual shift.
“This is the first quarter where we noted a significant reduction compared to the previous one. So even in the quarter and a quarter. It is down approximately 13%, “said PB Fintech Group, Yashish Dahiya, head of stock analysts after the results of the December quarter.
Alternative Paris
The founders bet on large companies to compensate for the slowdown in personal loans.
Paytm, based in Noida, continues the payments and loans of merchants as the main commercial opportunities. He suffered a shock in market payments after his associated entity Paytm Payments Bank had to stop operations after a regulatory action at the start of last year.
The disbursements of merchant loan was slightly higher at Rs 3.831 crore in the December quarter of this year, against 3,579 freeze on last year.
Mobikwik generates more than 70% of his overall income from his basic payment activity, he said in his quarterly results. The company works on a RuPay credit card product which can be linked to UpiAnd should also offer loans against fixed deposits, a secure credit product.
Dahiya of PB Fintech said that the secure credit disbursement activity of Paisabazaar takes over the group’s loan activities.
“Securing is now much greater than not guaranteed in terms of total disbursements. It’s about 1.4 times now. It is therefore clearly taken over, “he said during the last analyst’s call.
Go becomes harder
There is no doubt that fintech will face greater challenges in the future. While they are betting on new commercial opportunities, it will take time to evolve and the generation of income will have its own challenges, said the initiates of the industry.
“Loan service providers (LSP) were around 3 to 5% for each loan they would pay and collect in the name of their partner lenders, since lenders would slow their non -guaranteed retail loans, these margins will be Depressed and it should only descend from now on, unless the banking regulator offers a little relaxation on such unmarked loans. Said Dharmender Jhamb, partner, Grant Thornton Bharat
Guaranteed credit activities are also lucrative as the unhappy loan disbursement game.
“They are a very low margin. They increase line expenses on us, and we have not been able to find a logical reason commercially … But we tried them, but we have somehow remote of that, “said Vijay Shekhar Sharma, chief of Management, Paytm, at the call of analyst of December.
Even Dahiya of PB Fintech stressed that his company generates materially less income by guaranteed loan to disbursements.
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