Why NBFC Retail Lenders Need a Fintech Consultant

The Evolving Landscape

It is fair to state that traditional NBFCs in the retail lending space are sandwiched between tech-savvy banks, equipped to cater cost-effectively to similar customer segments, and new-age fintech lenders obtaining NBFC licenses to enter the market.

Fintech: A Catalyst for Compounding Growth

Undoubtedly, fintech can equip NBFCs for profitable compounding growth, delivering delightful experiences to customers, employees, and partners while optimizing operational costs, among other benefits.

Fintech Adoption Challenges

• While fintech can be beneficial for NBFCs, its adoption can be arduous. In my view, about 3 to 4 of 10 PoCs may succeed.
• Proven solutions in similar contexts can be adopted with minor modifications, while newer concepts require carefully designed PoCs to establish efficacy.

Unlocking the Power of Fintech

To get higher ROI for your fintech spending, it's essential to:

• Meet hygiene: waste no time in adopting solutions that have proven successful in similar contexts
• Collaborate early with the user departments to prioritize their most pressing pain points
• Test multiple solutions with well-defined KPIs and success criteria
• Do not attempt solutions just because they are the popular kids in the space

Internal Fintech Capability

Large organizations build dedicated fintech teams. However, it can be challenging for young NBFCs to sustain such teams:

• Talent shortage: Experienced talent gravitate towards bigger brands, fatter package and central locations
• Significant resource commitment in post pandemic era is difficult
• Resistance to change from various internal and external stakeholders

Expedite Fintech Adoption with Consultants

• Accelerated onboarding and comprehensive problem discovery
• Access to a network of good quality fintech startups
• Tailored solutions often requiring deep customization or stitching of multiple startup solutions to meet the NBFC's unique needs
• Improved ROI through strategic guidance and cost savings

Uncovering Unknown-Unknowns

Fintech consultants can help to identify and solve problems that the NBFC may not be aware of, giving the organization a competitive advantage

Mitigating Fintech Regulatory Risk

As technology continues to shape the financial landscape, regulatory guidelines are catching up fast. Fintech consultants can help NBFCs to proactively mitigate risks

The Future of NBFCs with Fintech

Fintech is no longer an option, but a necessity for NBFCs to stay competitive in the industry. With the help of fintech consultants, NBFCs can unlock success delighting their customers, employees, and partners