RBI clean-up forces rethink on NBFC-fintech co-lending

Co-lending relationships between regulated lenders such as banks and non-banking finance companies (NBFCs) on one side and fintech firms on the other are seen changing significantly in the next three to five years, experts said at a Mint BFSI Summit panel discussion.

- Salman S.H.

From left: Panellists Nirav Shah, MD & CEO, Equirus Capital; and Ravi Narayanan, MD & CEO, SMFG India Credit.

Speaking at the summit, Ravi Narayanan, managing director and chief executive officer of SMFG India Credit Co. Ltd, and Nirav Shah, managing director of Equirus Capital, said fintech partnerships with regulated entities will look very different in the coming years. Self-governance, better risk alignment, tighter unit economics and stronger user-data protection will replace earlier shortcuts such as balance-sheet renting or excessive credit guarantees.

In simple terms, the panellists said the winning models will be those that serve a digital-first borrower who expects fast decisions, clear communication and confidence that their data and money are safe.