With their immense involvement and contribution in the economy, NonBanking Financial Companies (NBFCs) have emerged as an alternative to mainstream banking. Be it infrastructure, transportation, employment generation and wealth creation, their contribution across the sector is visible. However, the year 2019 brought several challenges for the sector and an urgent need to hold the positives became evident. On the basis of experts’ opinions on the challenges faced by NBFCs last year, Rashi Aditi Ghosh of Elets News Network (ENN) explores the role of technology in keeping the sector at a pace and sync with the market environment for sustainability.
Why NBFCs are Significant to the Economy?
NBFCs provide credit to the micro, small and medium enterprises (MSME) segment and contribute significantly to financial inclusion. With their deep understanding of micro-markets, NBFCs over the years, have been able to emphasize on the lower end of the spectrum through product customisation.