India – Recently a senior bank official from Deutsche bank said that the bank will partner up with fintech firms. They will do so to do faster background checks and loan processing.
Deutsche Bank is on the goal to get small, medium and big businesses to loan pie. It decided to partner up with atleast 5 fintech firms to fasten up the background checks and loan processing. Even Amit Bhatia who is the MD of Deutsche Bank told the media that the bank is exploring tie-ups with few fintechs.
The bank wants to assess risk management, in investing their money in micro, small or medium enterprises. Amit said- “As of now what we are looking at tying up with fintechs to reduce time in terms of processing, making our risk management more rigorous and realtime. All the partnerships and investments we do are mostly for providing services for MSME loans and also our wealth management business.”
Amit also mentioned that the bank’s total advances was at Rs. 49,269 crore in Financial year 2019 and its deposit was Rs. 56,159 crore. He also shared his opinion, and expected that there is more scope in giving out small business loans, and the MSME segment than the corporate side.
The bank also shared its views on why using fintech is a better way to function. It said that few years ago everyone believed fintechs to be disruptors but they are actually collaborators. And it is a smart thing to tie up and do business with them.
Deutsche Bank explained how credit bureau check and bank statement analysis was a headache but now fintech companies will provide this information on a realtime basis. Fintechs in India, now see the light of the day. Paisabazaar and Bankbazaar are fintechs that are now rising in demand. These companies already host many banks and they source loan and credit card customers.
