The first point is a disruptive risk but my question is, even with the AI, where is the collateral? No lender will lend without:
- A fixed source of income; or
- Collateral security.
Indians love their gold and have more than they can wear. This works as an excellent collateral for gold-loan companies. They can, however, use Fintech to target customers outside their current market and that’s where the edge will come against industry peers/ non-organized sectors.