March 10, 2017
Lending – a $1 Trillion market – is one of the key focus areas of 2017 for banks in India, because of a few key factors like:
1) Introduction of marginal cost of funds-based lending rate (MCLR) by RBI, subsequent cuts in MCLR and general lending rates by banks making credit more attractive;
2) Addition of a large number of new customer base with federal inclusive banking initiatives,
3) Healthy growth of NBFCs in credit space,
4) Rising market demand for ease of access, speed and transparency in lending processes, and
5) Increased focus on SMEs being the critical contributors to the growth of Indian economy (SME lending market is worth $300 billion in India).
Banks are designing new products, business & technology models and integrating different services into unified lending services. And FinTechs are enabling the desired agility and innovation needed for it. Therefore, there is an increasing need for collaboration between Banks and FinTechs to tap this multi-billion lending market better. With this objective, Kotak has announced the Kotak Digital Lending Challenge, powered by MEDICI, seeking Digital Lending FinTech partners.
Announced on 2nd March 2017, The Kotak Digital Lending Challenge is a formal platform for new FinTechs and Startups to engage on one-to-one basis with the bank, with the intention of assimilating select innovative and new age solutions into their current lending segment.
Kotak Bank seeks technology and business solutions from both startup and mature FinTech companies. The additional focus is to identify FinTechs in the area of process automation in the digital lending space.Digital Lending Financial Models Business Models Consumer Loan</p>
(Home Loan, Car Loan,
Personal Loan, Credit Cards )
Commercial Vehicle Segments</td>Balance sheet</p>
Invoice Trading-Invoice Discounting
Any other innovative models</td>White Label</p>
Any other innovative models</td> </tr> </tbody> </table>
This challenge is open to entries from all over the world.
This challenge is Kotak Bank’s focused search for FinTechs in Digital Lending space not just to recognize the top three or four, but to partner with them to build actual solutions for Kotak. During the selection process, the shortlisted companies will have one-to-one dedicated meetings with the Digital Banking Innovation Committee and other key stakeholders in Lending. Each shortlisted company will be evaluated individually for the merits and benefits of its solution and not in comparison with other companies. The bank will work with the selected companies on pre-identified use cases and build-integrate solutions in Kotak’s existing banking systems.
LTP, along with its MEDICI platform, is a partner for the challenge and is acting as a bridge between Kotak Bank and FinTech companies.
You can APPLY for the challenge here and upon shortlisting, present your solution to the Kotak Innovation Committee in a one-to-one meeting. The last date for accepting entries is March 16, 2017.
The Kotak Digital Lending Challenge team will be shortlisting and meeting the FinTechs over a period of one month after closing applications. The chosen partners will be announced and contacted after meeting all shortlisted FinTechs.