India’s Consumer Credit Market Projected To Grow At A Higher Rate Than Most Major Economies Worldwide: Report

* Rise Of India’s Affluent Middle Class And Growth In The Rural Economy Continues To Alter Consumer Spending Patterns And Drive India’s Consumption Boom

* Rapid technological adoption has created acceptance for new financial tools, with India’s credit market evolving into a self-generating and self-sustaining one as traditionally conservative lenders increase their risk appetites amidst rising consumer creditworthiness 

India’s credit ecosystem remains resilient despite the pandemic, as revealed in the latest joint report:      The report “A Review of India’s Credit Ecosystem” highlights several key trends in the lending sector, notably, a key trend where India’s consumer credit market is projected to grow at a higher rate than most major economies globally. This will be driven by a shift in India’s demography, a burgeoning affluent middle class ramping up private consumption, as well as growth in rural populations, all catalysed by technology. Recognising gaps in the market for the unbanked and underserved populations, the report explores how NBFCs and fintechs have transformed the lending landscape to cater to the financial needs of these consumers. The report also highlights the regulatory environment supporting India's credit ecosystem throughout the pandemic.  

The report’s data, which tracks India’s credit ecosystem from March 2017 to February 2021, highlights a V-shaped recovery across Indian markets, with a gradual and steady improvement in sourcing trends. New sourcing crossed the pre-COVID-19 level in October 2020; however, sourcing volumes declined from January 2021 onwards due to the second COVID-19 wave and lockdowns being imposed.  

A remarkable recovery was observed across all unsecured credit products. Recovery of personal loans has been high in both low (<Rs 1 Lakh) and high (>Rs 5 Lakh) ticket size segments while the recovery in higher ticket size loans is also improving steadily. The credit portfolio has been resilient, in February 2021, growth stood at eight per cent year-on-year for the portfolio of key products, lower than the 13 per cent observed for March 2020. The pace of growth slowed down for all products, however, with unsecured products experiencing a faster year-on-year growth rate compared to secured loans. 

Mr. Neeraj Dhawan, Managing Director of Experian India, says: “The behavioural shift in Indian population has been tremendous just over the last five years. Consumerism has been growing in the previously untapped semi-urban and rural regions as millennials become the main driving force of the mass market. Technological adaption is steep which has, in turn, created acceptance for new financial tools. The biggest beneficiary of this change is the credit market, which is evolving into a self-generating and self-sustaining one. In line with this trend, the risk appetite of traditionally conservative lenders is growing as the horizon of creditworthiness expands. With its array of innovative solutions that help businesses in credit evaluation, smarter lending decisions and safeguarding themselves and their customers from fraud, Experian is at the forefront and one of the main enablers of this shift.” 

Mr. Deepak Bagla, Managing Director & CEO, Invest India, adds: “India is making giant strides in financial inclusion. The rise in the affluent middle class and growth in the rural economy is changing consumer spending patterns and driving the bulk of India’s consumption growth. Additionally, rapid technological advancements have further expedited the growth of the credit lending ecosystem. The report attempts to bring forward credible and practical information about the credit industry in these unprecedented times. This report which illustrates Experian and Invest India's shared commitment to advancing excellence in India's credit system.” 

Mr. Saurabh Mishra, Joint Secretary, Department of Financial Services, and Mr. Rajendra Ratnoo, Joint Secretary, Department for Promotion of Industry & Internal Trade, joined Mr. Deepak Bagla at the launch of the report.  

Key highlights of the report: 

Demand for credit-fuelled consumption: 

With India's financial industry evolving at an unprecedented rate, demand for credit in the country has also seen consistent growth over the years. The rise in the 'affluent middle class' and growth in the rural economy is changing consumer spending patterns and driving the bulk of India’s consumption growth. India’s domestic credit growth has averaged 15.1 per cent from March 2000 to March 2021, primarily driven by retail loans and increasing penetration of credit cards. The Indian consumer credit market continues to expand at a rate higher than most other major economies globally with 22 million Indian consumers applying for new credits every month.  

Increase in the purchasing power of an average Indian: 

India’s consumption expenditure is more than double of that in countries like Brazil. The private final consumption expenditure has been consistently rising over the past five years and has reached INR 123.1 Mn (USD 1.70 Mn) in 2020. India’s household debt has grown at an annualised rate of over 13 percent in the last five years.  

A shift in the demographic profile of the consumer: 

India is one of the world's youngest nations adding more working-age citizens every day. The new generation comprising of millennials and Gen-Z have better access to education, employment, and better incomes, leading them to break away from frugality and increased consumer spending. Along with the rise in income levels, consumers are spending on aspirational categories like lifestyle products, consumer durables, and jewellery. With India's rising affluence, domestic consumption in the last decade has also increased 3.5 times from INR 31 Tn (USD 0.42 Tn) to INR 110 Tn (USD 1.50 Tn).   

Changing customer landscape – the rising role of fintech: 

The most rapidly growing industry serving both consumers and businesses is fintech, who can be heralded as an innovation of the decade. When India’s financial services industry was once dominated by banks, fintechs created their own niche space by targeting customers from urban and rural regions who were rejected by banks due to lack of credit history or collateral. While introduce new innovative products, the fintech industry has also brought in the concept of ‘sachet packaging’ for easy access to financial products – available anytime, anywhere, and in any quantity. With rising customer expectations, the advent of e-commerce, and smartphone penetration, the Indian fintech ecosystem has grown manifold in the last few years. 

Growth Trends: 

1. Unsecured Products have seen an increase in loan books at a CAGR of 38 per cent vis-a-vis Secured Products, which grew at a CAGR of 17 per cent from 2017 to 2020. 

2. With the increase in consumerism and financial institutions, the new sanctioned loans have surged between FY18 and FY20 at a cumulative growth rate of 39 per cent. Unsecured loans, being the major contributor, grew with an impressive CAGR of 49 per cent. 

3. There has been in an increase in expansion of credit to tier 3 and 4 markets for lending. These markets have witnessed a sharp rise in low-ticket high-volume lending products like two-wheelers, entry-level cars, and affordable housing. Meanwhile, metros remain the biggest lending markets given the skew of the working population. 

4. The Indian economy has bounced back faster than expected in the second quarter of 2020 to 21 with a contraction of 7.5 per cent. A V-shaped recovery began after April 2020 and the current financial year is expected to be one of high economic growth. 

5. Legacy banking systems are paving the way for new-age lending systems driven by technology that will offer customised financial products and services to the masses. 

6. The rise in incomes in rural India has led to growing demand within the micro insurance sector. 

Fidelity Investments Announces COVID-19 Vaccination Drive For Associates And Their Families Across India

Fidelity Investments India has launched an onsite COVID-19 vaccination drive for employees and their immediate family members above the age of 18 years. The company has informed that the drive will be conducted in strict adherence with all government-approved protocols.

Fidelity Investments India, in collaboration with its healthcare partners, has launched the first stage of its vaccination program at its Bangalore and Chennai offices, where the company has operations, and will roll it out in phases to the rest of its employees who opt for it over the coming weeks. In addition, the firm will reimburse the vaccine expenses for employees and their immediate family members who choose to get vaccinated at an authorized vaccination center anywhere across the country.

“At Fidelity Investments, the safety and wellbeing of our employees is our foremost priority. Currently, our goal is to maximize vaccination, and we are directly working with the authorities to ensure easy access to vaccines for our employees in adherence with the government’s guidelines. We are continuously tuned to the needs of our employees during the pandemic and have announced several new benefits to ensure they get all possible support during these challenging times,” said Mr. Arshad Sayyad, Head, Fidelity Investments India, in a statement.

Ever since the onset of the COVID-19 pandemic, Fidelity Investments, one of the largest financial services firms in the world, has extended all possible support to employees towards their health and wellbeing even as they work from home across the globe. Fidelity was one of the first companies to enable its employees to work from home when the pandemic struck last year and moved quickly to ensure all employees were able to connect and work seamlessly, with more than 90 percent of its worldwide workforce working remotely. The company has a robust benefits and wellness program that is constantly evolving in line with the needs of employees and their families. Owing to the extraordinary nature of the current pandemic, Fidelity Investments India has enhanced its several listening posts and channels to listen to the voice of employees and continuously adapt its flexible benefits program to cater to their holistic needs, both emotional and physical. These measures have included special allowances to assist employees and their families with COVID-19 expenses during the current second wave, meal support and accommodation facilities for isolation of affected employees and families, an employee-run 24/7 virtual assistance center, enhanced insurance coverage, telemedicine services, and emotional wellness webinars.

ABOUT FIDELITY INVESTMENTS

Fidelity’s mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $10.7 trillion, including discretionary assets of $4.0 trillion as of April 30, 2021, we focus on meeting the unique needs of a diverse set of customers: helping more than 35 million people invest their own life savings, 22,000 businesses manage employee benefit programs, as well as providing more than 13,500 institutions with investment and technology solutions to invest their own clients’ money. Privately held for 75 years, Fidelity employs more than 47,000 associates who are focused on the long-term success of our customers. Fidelity Investments India began operations as a global capability center of the company in 2003, and currently has around 7,000 employees located across Bangalore and Chennai. We deliver solutions to our customers across all lines of the global business in the areas of technology, operations, analytics, research, and data. 

Uber’s India-Based Engineering Team Leads Tech For Third-Party Cab Booking In The UK

 

Uber’s Bengaluru-based mobility engineering team is leading the technological development of a complex integration with a third-party cab aggregator in the UK, the company’s first-ever such product offering.

‘Local Cab’, is currently being piloted in Plymouth and Oxford in the UK, and allows residents there to book third-party cabs offered by aggregator, Autocab, through the Uber app. 

The mobility engineering team led the integration, which included breaking Uber’s tech stack and building a new service, allowing Uber riders to be paired with a third-party driver. The team integrated the Uber app with Autocab’s marketplace with the help of third party (3P) application programming interfaces (APIs) developed for local cabs. Uber acquired Autocab in 2020. 

As part of the integration, riders in Plymouth and Oxford will see the option to book a “Local Cab” on their Uber app, and upon requesting a ride, will be routed to the Autocab marketplace, which will pair it with an available operator. The routing to the Autocab marketplace will happen at the backend, with the booking interface continuing to be that of the Uber app. 

The product is a win-win as it offers riders access to Uber at the touch of a button. At the same time, it enables Uber to connect with riders in towns and cities where it doesn't operate.  

Commenting on the development of the new product, Manish Bharani, Engineering Manager, Rides Engineering said, “The Rider engineering team has led several innovations for Uber globally, and the third-party integration is the latest feather in its cap. We continuously leverage technology to find solutions for augmenting rider convenience. Offering riders a chance to book cabs through the Uber app even in cities where we aren’t present goes to show the ease of use that comes with the platform.‘’

The Rider engineering team has been the architect of several leading innovations for the Rides business, such as building the UberLite app, launching products such as self-drive Car Rentals in the US, Australia and New Zealand. The team comprises Android, iOS and Backend engineers who closely partner with Product, Operations  and UX Designers.

About Uber

Uber’s mission is to create opportunities through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 15 billion trips later, we're building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.

Sterlite Power Secures INR 580 Crore Funding From REC For Udupi Kasargode Transmission Project

Sterlite Power, a global developer of power transmission infrastructure, announced the successful financial closure of the project set up by Udupi-Kasargode Transmission Project Ltd (UKTL). It has secured the entire debt funding of INR 580 crores from one of India’s largest power sector lenders, REC Limited  (REC.).  

The project set up by UKTL is an Inter-State Transmission System project spanning across the southern states of Karnataka and Kerala.  It is made up of two critical elements including a 1000MVA 400/220 kV Gas Insulated Substation (GIS),  one of the first GIS substations to be built at Kasargode in Kerala. In accordance with the Letter of Award received from RECTPCL (REC Transmission Projects Company Ltd.), the project involves construction of a 400kV (Quad) D/c  transmission line, extending over ~240 ckm, from Udupi in Karnataka to Kasaragode in Kerala. The project scope also includes supply and installation of two 400kV line bays and bus bar extension at Udupi switchyard. 

Commenting on the development, Anuraag Srivastava, Group CFO, Sterlite Power said, “Sterlite Power has been successful in concluding a number of financial deals with global and national investors in the past. We are pleased to secure funding from REC - one of India’s largest financial institutions in the power sector, for this project.”  

Recently, the company announced an equal partnership with global investment manager AMP Capital, to develop greenfield power transmission projects in India which includes the UKTL project as well. It has also raised project finance from both private as well as public sector financial institutions like IndusInd Bank and PFC Ltd., for its transmission projects. In March 2021, Sterlite Power successfully completed its transmission project NER-II and subsequently sold it to IndiGrid. 

About Sterlite Power 

Sterlite Power is a global developer of power transmission infrastructure with projects of over 13,700 circuit kms and 26,100 MVA in India and Brazil. With a portfolio of power conductors, EHV cables and OPGW, Sterlite Power also offers solutions for upgrading, uprating and strengthening existing networks. Sterlite Power is the sponsor of IndiGrid, India’s first power sector Infrastructure Investment Trust (“InvIT”), listed on the BSE and NSE. Sterlite Power has been recognised with The Economic Times Innovation Awards 2020 and is a recipient of global awards from S&P Global Platts and International Project Management Association (IPMA).  

GiveIndia To Invest In Scaling Giving Culture Further With Generous Grant From Mackenzie Scott

* One among the 286 organisations globally that together received $2.7bn gift 

In recognition of its mission of scaling the giving culture to alleviate poverty in India, Bangalore-based non profit GiveIndia has been awarded a generous grant by US author and philanthropist Mackenzie Scott. India’s largest and most trusted giving platform is one among 286 beneficiaries globally of Scott’s largesse.

The gift comes with no restrictions, which is extremely rare in the world of philanthropy, and signals strong confidence in the team at GiveIndia to effectively carry out its mission. 

On the announcement, Founder 2.0 and CEO of GiveIndia Atul Satija said: "This is a big moment for us as much as it is a big moment for philanthropy. Mackenzie Scott has left it to the organisations receiving the awards to decide on the most impactful way of spending them. This puts a huge onus on us to use the contribution responsibly to further scale our poverty alleviation work. As an organisation enabling giving back, this would mean enhancing our platform and technology to enable our 2,000+ NGO partners to scale their crowdfunding, and partnering with corporates and foundations to support their giving. We are extremely honoured and humbled by the trust placed in GiveIndia as an organisation."

Developing simple and diverse giving choices has been at the heart of GiveIndia’s mission to scale up charitable giving. It has built a giving ecosystem - including crowdfunding, corporate giving, cause marketing and philanthropy consulting - that enables individuals and organizations to donate to various causes and has grown its base of donors to 2M+. 

Over the last two years, GiveIndia has also received grants from A.T.E. Chandra Foundation, Bill & Melinda Gates Foundation, Omidyar Network India, Rohini Nilekani Philanthropies and philanthropist Vikrant Bhargava. 

About GiveIndia

GiveIndia exists to alleviate poverty by enabling the world to give. Established in 2000, we are the largest and the most trusted giving platform in India today. We enable individuals and organisations to raise and donate funds conveniently to any cause they care about, with offerings including crowdfunding, corporate giving, cause marketing and philanthropy consulting. Our community of 2M+ donors and 250+ partners have supported 2,000+ verified nonprofits, serving 15M+ people across the country.

Women In Tech To Come Together For WITI’s Annual Global Summit From June 22-24, 2021

●   As part of Women in Technology International’s (WITI) expansion into South Asia, women technologists from APAC regions will participate in the Annual Global Summit 2021

●  50% of all the proceeds from APAC registrations for the summit will go towards covid relief funds in India.

●  The summit will be held virtually from June 22-June 24

●  APAC students from technology background will receive 100% scholarship to attend the Summit

WITI (Women in Technology International), the leading advocate for innovation, inclusivity and STEAM (Science, Technology, Engineering, Arts & Maths) has announced its expansion into South Asia with a special APAC program on ‘Stories of Resilience’ during its virtual Annual Global Summit from June 22-24, 2021.

The keynote speakers include Ms K K Shailaja, Former Health Minister of Kerala, India and Ms. Tessy Thomas, Distinguished Scientist and Director General (Aeronautical Systems), DRDO, India, popularly known as the Missile Woman of India. The APAC sessions will focus on topics including - future of APAC women in tech, thriving in post pandemic workplace, harnessing technology to create an inclusive future, well-being and empathetic leadership, women leaders rewriting traditional views of entrepreneurship and many more.

“WITI’s 2021 Global Summit is the first to feature a dedicated APAC track. The designated APAC track at our Summit celebrates the growth and acceleration of WITI’s regional expansion efforts across the Asia-Pacific. We hope that by highlighting Stories of Resilience, we can shine a light on how individuals and organizations have been withstanding the challenges thrown their way, especially during these unprecedented times,” says David Leighton, President of WITI. 

Some of the speakers include Arundhati Bhattacharya, Chairperson and CEO – Salesforce India, Gargi Dasgupta, Director - IBM Research/India & CTO, IBM India & South Asia, Rucha Nanavati, CIO - Mahindra Group, Rohini Srivathsa, National Technology Officer (CTO) - Microsoft India, Aditi Banerjee, MD – Accenture India, Annie Mathew, Director, Developer Relations - Microsoft APAC, Supriya Dhanda, Country Manager - Western Digital and others.

“Our APAC Track at the WITI Global Summit is a huge opportunity to address the gender and seniority gap for women in tech roles. We’re excited to showcase our multifaceted approach of skill development, networking and leadership with this event and discuss what corporations and women in APAC can do to achieve gender equity. Also, we are happy to extend the Carolyn Leighton Scholarship to students in APAC, both male & female, to honour the vision of Carolyn Leighton, founder of WITI and her work in building out this global sisterhood over the last 30 years,” said Arya Murali, Vice President, WITI India.

The Carolyn Leighton Scholarship is extended to students in tech of all genders in the APAC region to attend the WITI APAC summit, at a 100% scholarship. The scholarship includes an opportunity to attend 3 days of the global summit, a certificate of participation in WITI’s 27th Annual Global Summit and 1-year WITI membership. Undergraduate, graduate and postgraduate students who are currently enrolled in any technical university within India and the rest of APAC are eligible to apply for the scholarship.

Salesforce, Microsoft and Mediatek are sponsors for the APAC Track. WITI has also partnered with GiveIndia to donate 50% of all the proceeds from APAC registrations for the summit to go towards covid relief funds in India. Last year, WITI’s Global Summit witnessed participation from over 4000 women technologists from across the globe.

About WITI - WITI’s global reach surpasses 3 million professionals across North America, South America, EMEA, Asia Pacific, Southeast Asia, and Australia, through more than 300 partners, 50 domestic and 13 global networks. WITI delivers to its members leading edge, best practice tools, programs and platforms designed to increase innovation, competitiveness, and revenue. WITI is a unique organization which has spent 30 years developing digital platforms & partnerships designed to spotlight its partners and members, access to a global audience that is not available in other organizations. It would take joining/participating in many organizations to reach this audience.

QNET Funds Project CoHeal To Provide “Free Medical Care To Covid Patients" In Bangalore

* Hospital started by Bangalore tech firm Globals with support from QNET, Presidency University, and Rotary Manyata 

* 100-bed free Hospital with ICU Facilities  

QNET, Asia’s leading direct selling company, through its CSR arm, RYTHM Foundation has joined hands with a group of young entrepreneurs in Bangalore to convert a non-operational hospital into a free Covid Care Health Centre through Project CoHeal. The funding from QNET has helped transform the disused Rajiv Gandhi Medical Hospital building in R.T Nagar into a 100-bed Covid Care facility that provides free, round-the-clock care to those who need it the most.  

Project CoHeal is the brainchild of the young entrepreneurs behind Bangalore based technology firm Globals Inc who joined hands with the Rotary Club Manyata and Presidency University to launch this as a joint CSR initiative.   

Amruta Desai, the Executive Director of Globals explains how the project came into being.  

“It was very unfortunate and sad to see people around us losing their lives simply due to a lack of oxygen. We reached out through our resources to import oxygen concentrators and put them to use. We realised just by doing this we were helping a lot of people who needed the oxygen” says Desai.  

What began as efforts to import and provide oxygen concentrators for patients, soon evolved into the idea of adding to the healthcare infrastructure within the area. Project CoHeal was born with the aim of creating a more sustainable solution for the future while also addressing the urgent need of the hour – a healthcare facility for the community with skilled manpower. 

The support from QNET’s Indian business facilitated by the company’s CSR arm, the RYTHM Foundation has helped equip the hospital with Oxygen Concentrators, HFNC ICU Ventilators, and also covers the payroll for the doctors and nurses of the hospital for the next 6 months.  

This 24-hour COVID care hospital has zero cash counters, assuring patients that treatment is 100% free. It is also in the process of incorporating a dedicated paediatric wing as well as building intensive care unit (ICU) capabilities. Other facilities in the hospital include a clinic, elevators for stretchers, oxygen flow meters, pharmacy, lobby, X-Ray, washroom, AC, parking zone, and doctor’s lounge. 

“We are so thankful to RYTHM Foundation for this aid because one of the things we wanted to do was convert 15 high dependency units into ICUs. We are currently taking in mild to moderate cases of patients, but if these cases get critical, they may require ICU support and the use of ventilators. Now with this contribution, we have at least a minimum of 4 ICU beds that can be set up immediately.” 

The Project CoHeal facility opened its doors on May 24, 2021, and was set up at record speed in a space of barely 7 days through the joint efforts of the team at Globals, Presidency University, and the Rotary Club of Manyata. QNET stepped in to help in early June to support with scaling the facilities.  

Commenting on the initiative, Rishi Chandiok, Regional Director (South Asia) for QNET said, "Project CoHeal is a great example of organisations coming together to fight COVID. As the name of the project suggests, the objective is to redirect the fears of COVID and its consequences towards a more positive focus on ‘co-healing’ or healing together. Setting up a hospital, especially during this time, is not an easy task. But Project CoHeal is testament that if you have the will and the intention to do something good for the community, you will find the right partners and support to help you reach the goal. We commend the team at Globals for working tirelessly to pull this off in record time and help so many people in need.” 

Project CoHeal has also received the approval and support from the Bruhat Bengaluru Mahanagara Palike (BBMP) which lists Project CoHeal as an option for people to avail of for its medical care services.  

About QNET  

QNET is one of Asia's leading e-commerce enabled direct selling companies offering a wide range of health, wellness, and lifestyle products. QNET's business model pivoting upon technology and e-commerce has helped empower millions of entrepreneurs in more than 100 countries worldwide. 

QNET is headquartered in Hong Kong and has a presence in more than 25 countries around the world through subsidiaries, branch offices, agency partnerships, and franchisees.  

QNET is a member of the Direct Selling Association in several countries, as well as the Hong Kong Health Food Association and the Health Supplements Industry Association of Singapore, among others. In India, QNET operates through its sub-franchisee Vihaan Direct Selling (India) Pvt. Ltd. and is a member of the Health Foods and Dietary Supplements Association (HADSA), ASSOCHAM, and CII. 

QNET is also active in sports sponsorships around the world. Some of the more prominent partnerships include being the Direct Selling Partner of Manchester City Football Club and the African Club League Championships of CAF.