Digital lenders focus on portfolio quality

Digital lenders are increasingly focusing on improving their portfolio quality and underwriting processes amid tightened lending norms, lack of equity capital and a “funding winter”.

In the current environment, more financial technology companies are likely to engage in co-lending arrangements with traditional lenders while well-capitalised entities may seek to acquire smaller peers.

“With tightening equity capital, flavour is frugal. Focus on core products and market segments, cost optimisation, efficiencies, portfolio quality, risk management, governance, compliances, customer value/protection lays a strong foundation for sustainable and scalable business models.