M2P Fintech expands offering to provide end-to-end lending interface for banks, fintechs

M2P Fintech founders (left to right) Madhusudanan R, Prabhu R and Muthukumar A.

M2P Fintech has introduced a core lending suite to expand its products to allow customer banks and fintechs to meet regulatory, lending as well as banking requirements through a single offering, the company said on September 14.

Until now, the Insight Partners and Tiger Global-backed fintech infrastructure startup provided payments, lending and digital banking interfaces.

It decision comes after the Reserve Bank of India’s (RBI) move to regulate digital lending.

“The core lending suite is to provide end-to-end management from customer onboarding, loan management, customer underwriting and also payment clearing. Typically 10-12 providers that provide these different pieces of tech to a bank or NBFC, we have put that into one offering,” M2P Fintech co-founder Madhusudanan R told Moneycontrol.

In the next 12 months, he expects the core lending suite to contribute 20 percent to revenue.

Also read: Exclusive Interview | We are open to fintech partnerships, says Kotak Mahindra Bank’s new CTO

The announcement comes after the company made a string of acquisitions and investments to expand its offerings.

It has acquired loan-recovery platform Origa, credit card infra company Wizi, banking solutions provider BSG IT soft, cloud-lending platform FinFlux, identity validation startup Syntizen and account aggregator Finvu.

“With the core lending suite any lending institution can level up owing to it being a single solution from onboarding to collections to ‘go to market’ strategies,” Abhishek Arun, President, M2P Fintech, said.

Enterprises would have the option to go with the entire suite or choose from an array of microservices, he said.

“This means one could seamlessly build or remove products, solutions, or services on top of their existing systems, depending on the shift in consumer behaviour without affecting business continuity,” Arun said.

The platform covers different facets of lending such as onboarding (digital identity and KYC), loan management (loan origination and management) debt management (collections), go-to-market strategies (partnerships and open credit enablement network), data services (account aggregation), operations (FinOps, ReCon), and access to consumption platforms (buy now pay later, cards, UPI, and Fleet) that form part of CLS's end-to-end offering.

Previously Yap, M2P Fintech was founded in 2014 by Madhusudanan R, Muthukumar A and Prabhu R.

The company’s customers include banks like ICICI Bank, Bank of Baroda, SBM Bank India, Yes Bank, Federal Bank. The startup also works with fintechs such as OneCard, Slice, Razorpay, EnKash, Kodo and Open.

The RBI on September 2 notified a set of guidelines for digital lending. It said that lending and borrowing should be executed only between bank accounts of the registered lender and the borrower or end beneficiary without the presence of any pass through or a third-party account.

This stipulation has a bearing on the viability of models that lent through co-branded bank prepaid cards in partnership with non-banking financial companies (NBFCs).

Moneycontrol has reported that players like Slice, Uni and PayU’s LazyPay stopped onboarding new customers after banking partner State Bank of Mauritius India took a call to pause onboarding.