| |OCTOBER 20219nels influencing the purchase of over 40-60 percent of loan products. Over 55 percent depend on online tools/recommendation of credit options.Younger Demography: The age of new borrowers is falling everyday with over 49 percent of consumers falling under the 30-year bracket which explains the in-fluence of the digital avenues.Acceleration Towards Digital Intensified by COVID-19: The need for social distancing created by the pandemic forced people to seek online avenues for all their requirements. The concept of online transactions for all financial products really took-off after March 2020 when people started actively exploring digital channels as an alternative to visiting the banks/NBFCs.Switch to Digital - A Matter of Survival for Lenders: Simply put, lenders have been forced to adapt to the digital lending platforms as a matter of survival. Anyone who doesn't will perish creating a dinosaur moment in the world of lending.What are the benefits of Digital Lending?Reduces Borrowing from Informal Sourc-es: Digital lending has democratised access to funds by extending its reach to anyone who has a smartphone and internet access. This has reduced the dependence on usurious mon-eylenders leading to a faster, cleaner and cheaper line of credit.Drastic Cut in the Time Taken to Get a Loan: From being a matter of weeks or days, getting a loan has become a matter of hours today, thanks to digital lending. Simplified processes and elimination of pa-perwork ensure that application for loan is quick and convenient. This is one of the main reasons why digital channels have become the preferred option for borrowers.Good Channel for Micro Enterprises & Low Income Consumers: Borrowing money for busi-ness or personal use has never been easier. The el-igibility criteria for loans have been simplified and made transparent. The system algorithms take care of the loan eligibility parameters while eliminating the human bias, making it easier for all sections of the population to access loan products.Protection of Lender Interests by the Use of AI: Digital platforms have inbuilt intelligence to run Praveen Paulose
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