Fintechs Disburse Rs 29,875 Crore in Q1 FY23-24, Achieving 32% YoY Growth: Report

• ByStartupStory     |    September 11, 2023

In the first quarter of the fiscal year 2023-24, member companies associated with the Fintech Association for Consumer Empowerment (FACE) disbursed loans amounting to Rs 29,875 crore, marking a substantial 32% year-on-year increase. This performance also reflected a 7% growth compared to the previous quarter, according to findings from a FACETS report.

Additionally, these member companies witnessed loan volumes exceeding 2.2 crore, denoting a significant 31% annual rise from the preceding fiscal year and a noteworthy 16% increase on a quarter-on-quarter basis. The average loan ticket size during Q1 FY 23-24 stood at Rs 11,043.

The report emphasized that the growth rates among member companies varied significantly due to factors such as their scale, segment focus, and access to capital. However, it was noteworthy that over half of the member companies reported an increase in disbursement volumes.

The data analyzed in the report was sourced from nearly 36 FACE member companies that engage in lending activities through their own Non-Banking Financial Companies (NBFCs) and in collaboration with other regulated entities, primarily NBFCs.

Sugandh Saxena, CEO at FACE, commented on the industry’s performance in relation to the Digital Lending Guidelines (DLG), which were introduced in September 2021. He expressed satisfaction with the industry’s contribution to meeting the credit needs of underserved segments and its ability to adapt to various regulatory aspects.

The Account Aggregator (AA) framework, introduced in September 2021, gained traction in late 2022 as public-sector and large private-sector banks joined the framework. Fintech NBFCs notably adopted the AA framework at a rapid pace in the current year. Ten companies, responsible for 38% of the total disbursement volumes in Q1 FY23-24, disbursed 3.6 lakh loans using the AA framework, constituting 4% of their total disbursement volumes. Overall, approximately 2% of loans were disbursed using the AA framework, signaling promising progress for the AA ecosystem.

FACE serves as an industry association and non-profit organization committed to promoting fair and responsible digital lending practices through self-regulation and customer-centricity. Its membership includes fintech lenders, regulated balance-sheet lenders, and platform/aggregator partners.

Furthermore, a report by Elevation Capital and McKinsey published last month projected that the Indian fintech sector is on track to achieve an annual revenue scale of $70 billion by FY30. The report anticipates a substantial value creation of $400 billion within the fintech industry by 2030, representing a fourfold increase from current levels

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