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Online Lending Industry Celebrates Festive Surge; IT Majors Face Slowdown
Writer: Tanya Chaturvedi
As a dedicated content writer, I thrive on the art of storytelling through various media forms. My passion lies in creating engaging, informative and visually captivating content that resonates with audience across platforms.
India, 30 Oct 2023 5:19 AM GMT
Editor : Ankita Singh |
A literature lover who likes delving deeper into a wide range of societal issues and expresses her opinions about the same. Keeps looking for best-read recommendations while enjoying her coffee and tea.
Creatives : Tanya Chaturvedi
As a dedicated content writer, I thrive on the art of storytelling through various media forms. My passion lies in creating engaging, informative and visually captivating content that resonates with audience across platforms.
Amid the ongoing festive season, the digital lending industry is experiencing a notable upswing, signaling a potential revival in credit demand and a resurgence of consumer spending.
In the latest developments highlighted in the ETtech Morning Dispatch, various players within the fintech lending sector are gearing up to capitalize on the increased consumer activity during the upcoming months.
The December quarter traditionally heralds a surge in consumer spending, and this year, digital lenders are optimistic about meeting the amplified credit requirements driven by heightened festive sales. Key industry players, including Paytm, InCred, and Mumbai-based platform NeoGrowth, are gearing up to leverage the current market dynamics and meet the rising demand for credit.
Emphasizing the role of technological advancements, the industry is witnessing an increasing number of consumers applying for credit online, aided by streamlined processes such as Aadhaar, digital customer onboarding, and e-KYC. The adoption of buy-now-pay-later loans is also gaining traction, both in physical retail stores and online shopping platforms.
Additionally, the boost in e-commerce activities is further bolstering the digital lending landscape. Amazon reported a significant portion of shopping orders during its recent flagship sale event were funded through instalments, with a considerable uptake of interest-free EMI offers. Similarly, Bengaluru-based fintech firm Axio, a key player in facilitating pay-later loans on Amazon, noted a substantial increase in loan applications.
However, amidst the promising prospects within the digital lending domain, India's IT services sector is encountering some challenges. Industry giants like Infosys, Wipro, Tata Consultancy Services (TCS), and HCLTech are experiencing a slowdown in growth rates, with some projected to report their lowest growth figures in years. Concerns surrounding deal quality and revenue sustainability have been highlighted, signalling potential challenges for the sector in the foreseeable future.
As the industry grapples with varying dynamics, experts warn of the possibility of some companies posting their worst growth figures in the coming years. With careful monitoring and strategic adjustments, the digital lending and IT services sectors are expected to navigate through the evolving market landscape, leveraging technological innovations and prudent business strategies to ensure sustained growth and resilience.
Also Read: RBI Grants In-Principle Approval to MobiKwik's Zaakpay As Payment Aggregator
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