In a significant development for the lending sector, the newly announced Public Tech Platform by Reserver Bank of India (RBI) would facilitate a smooth flow of necessary digital information to lenders, enabling the supply of ‘frictionless finance' said a senior BFSI technology leader.
According to Karthikeyan Krishnaswamy, Co-founder & CTO, KreditBee RBI's Public Tech Platform is poised to streamline the flow of digital information, paving the way for ‘frictionless finance'.
“The Public Tech Platform would facilitate a smooth flow of necessary digital information to lenders, enabling the supply of ‘frictionless finance'. It will make the lending process more efficient by lowering costs, enabling faster distribution, and improve scalability,” Krishnaswamy said.
Krishnaswamy also emphasised that the lending industry is set for a marked uptick in efficiency due to this new tech integration. “The Public Tech Platform is anticipated to cut down operational costs and expedite the distribution process for lenders. This enhancement is not merely about numbers; it promises improved scalability, a crucial asset for financial institutions seeking to navigate a dynamic market landscape.”
However, efficiency isn't the only card the platform has up its sleeve. Krishnaswamy stressed the platform's capability to serve as a nexus for collaboration among varied stakeholders. From traditional banks and non-banking financial companies (NBFCs) to the agile realms of FinTech and nascent startups, the platform can accommodate all. With such diverse participation, the stage is set for the joint development of innovative solutions, specifically in pivotal sectors like payments and credit provision.
“This platform will promote multiple players, including banks, non-banking financial companies (NBFCs), FinTech businesses, and startups, to work together to develop and provide solutions in the areas of payments, credit, and other financial service,” he said.
According to KreditBee CTO, such collaborations, facilitated by the platform, have the potential to rewrite industry standards. Established banks could potentially harness the innovative prowess of FinTech firms, combining resources and expertise. Concurrently, startups can find solid ground by aligning with seasoned NBFCs, benefiting from their vast infrastructure and market know-how.