Research conducted by Robocash Group revealed that the income of the population in India is foreseen to be US$47 billion less than anticipated in 2021 as a result of COVID-19. Non-banking lending fintech companies are in a prime position to meet the demand, promising impressive growth.
The number of COVID-19 cases continues to rise in the country, approaching 34 million. Despite the severity of the situation, there is a decreasing trend in the number of active cases. Though the consequent increase in unemployment is less than during the first wave of COVID-19 last year, the average unemployment rate of 6-7% has risen to a maximum of 12% in May 2021. The pandemic will continue to have a negative impact on the employment recovery rate, and a further increase in unemployment is expected. The average wage in the country is estimated at 29.4 thousand rupees per month. If this trend continues for two months (this is how long the peak usually lasts), Indians will face a gap of 3.53 trillion rupees in their personal budget.
India ranks second in Asia after Singapore by the scale of non-traditional finance companies and financial centres. The leading technologically advanced fintech companies may count on a significant market share in the future. With sufficient experience and resources to weather the crisis, they are most likely to implement an efficient system for assessing the creditworthiness of any applicant, especially those who may not be officially employed (even temporarily).
Analysts of Robocash Group comment: “India’s national fintech sector promises to grow by an impressive US$100 billion, totalling US$160 billion by 2025. E-commerce in India demonstrates growth and is expected to reach US$99 billion by 2024. Non-bank lending fintechs registered a growth of 38 p.p. YoY in September 2020 despite the COVID-19 pandemic. The microfinance sector is also on the rise, up 10.1 p.p. YoY by the end of December 2020. Indian fintechs are gaining increasing interest from corporations and investors, attracting nearly US$647 milllion in 33 investment rounds in Q2 2020.”