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Last Updated : Dec 04, 2019 12:29 PM IST | Source: Moneycontrol.com

How Bengaluru-based MoneyTap challenged liquidity crunch and made profits

Customers download the MoneyTap app for free and then a patent-pending propriety ChatBot takes the customer through the application process for the credit line.

Representative image
Representative image

Bengaluru-based Moneytap, which disrupted the digital lending business through its App-based Personal Line of Credit, has witnessed a steady growth since it started operations in 2016.

The company, which recently bagged the Non-banking Financial Company (NBFC) license from the Reserve Bank of India (RBI), aims to expand its market reach. Anuj Kacker, COO and Co-Founder, MoneyTap share more details about the company and its future plans.

Excerpts:

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Q. How has the growth been for MoneyTap since it entered the market?

A. In the first few months post our launch in 2016, we had issued Credit Lines to the tune of a few lakhs. We have been on a 5x growth trajectory and in just four years of our operations, achieved a book size of ₹1,000 crores and a disbursal ARR of ₹2,500 crores.

Q. How many customers has MoneyTap catered to so far and what is the amount of loan disbursed?

A. MoneyTap caters to the credit needs of middle-class India by providing quick, easy and hassle-free credit on mobile at affordable interest rates and flexible EMIs. MoneyTap has disbursed over ₹2,500 Crore as credit to the mid-segment customers in India.

Q. Who are your major borrowers? What percentage of repeat customers do you see?

A. The major chunk of our borrowers are salaried, middle-class customers.

Credit Line, unlike a personal loan, provides a credit limit from which customers can borrow flexibly again and again. So, we have above 75% repeat customers who borrow multiple times from their credit line.

Q. What are the major technological innovations done by MoneyTap to meet the growing demand?

A. MoneyTap is continuously striving to bring the most seamless and hassle-free credit experience to the consumers. MoneyTap is a full stack consumer lending company and the cutting-edge technology has helped us create the best combination of quick credit and smooth process.

Customers download the MoneyTap app for free and then a patent-pending propriety ChatBot takes the customer through the application process for the credit line. Smart AI & ML algorithms help them get an instant credit decision within 4 minutes.

Q. How is MoneyTap surviving the crunch situation?

A. The liquidity crunch doesn't affect us because we have a bank partner. Banks are not affected by the market cash crunch and are going bullish in their lending. So, while others are not able to lend much because of the dried-up funds, our business is flourishing.

Also, we believe in responsible and disciplined lending with one of the lowest NPAs in the industry. We took a balanced approach much before the liquidity crunch hit. And now that we have our own NBFC licence, we are extremely cautious in selecting risk portfolios according to the regulations.

Q. Fintech companies, with their innovative business models, are disrupting traditional players to bring more value to the customers. Comment?

A. Fintech platforms now offer paperless and hassle-free money lending services to borrowers. Unlike traditional lenders, which usually take weeks to approve a loan, customers can get their loans approved via Fintech lending platforms in a matter of minutes. It goes without saying that technology & innovation is the driving force behind the quick and efficient services that anybody with an internet connection and a computer or a smartphone can access.

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First Published on Dec 4, 2019 12:29 pm
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