Great article! From my perspective, fintech and lending are closely intertwined, with fintech acting as a facilitator of the lending process by enhancing its convenience, quality, and speed of execution. The term "low ticket size" typically refers to unsecured lending, such as personal loans, which is predominantly a digital process with shorter tenures and higher non-performing assets (NPAs) due to the thin credit history of many borrowers. On the other hand, "large ticket size" lending typically involves secured loans like auto loans and mortgage loans with longer tenures and relatively lower product NPAs. The underwriting process for such loans may require physical verification and wet signatures, making it a more "phygital" process. However, with the adoption of digital technologies and banks servicing early to bed (ETB) customers, even this segment is becoming more digital with propositions like pre-approved insta loans. Thus, I believe both fintech segments cater to different sets of customers. Additionally, there are also direct selling agents (DSAs) or aggregators who primarily focus on building a healthy pipeline and effective conversions, as underwriting is not their core competency. Reach out to me at maverickxpert@gmail.com for more inputs!!
Great article! From my perspective, fintech and lending are closely intertwined, with fintech acting as a facilitator of the lending process by enhancing its convenience, quality, and speed of execution. The term "low ticket size" typically refers to unsecured lending, such as personal loans, which is predominantly a digital process with shorter tenures and higher non-performing assets (NPAs) due to the thin credit history of many borrowers. On the other hand, "large ticket size" lending typically involves secured loans like auto loans and mortgage loans with longer tenures and relatively lower product NPAs. The underwriting process for such loans may require physical verification and wet signatures, making it a more "phygital" process. However, with the adoption of digital technologies and banks servicing early to bed (ETB) customers, even this segment is becoming more digital with propositions like pre-approved insta loans. Thus, I believe both fintech segments cater to different sets of customers. Additionally, there are also direct selling agents (DSAs) or aggregators who primarily focus on building a healthy pipeline and effective conversions, as underwriting is not their core competency. Reach out to me at maverickxpert@gmail.com for more inputs!!