Pune-based OneCard and Bengaluru’s WintWealth have applied for licences to operate as non-banking finance companies, people in the know said.
These startups intend to join fintech majors such as Cred, Groww and Jupiter that have recently bagged the lending licences. Stock investing platform Upstox is also looking to enter the credit domain, initially in partnerships with other NBFCs and banks but eventually on its own.
Regulatory domain
After the Reserve Bank of India came out with digital lending licences, large fintechs started taking steps towards getting more regulated and increasing their stake in the game.
The idea is to provide a wide stack of lending solutions to retain customers on their platform, he added.
Also with an NBFC licence, fintechs can enter into co-lending partnerships with large banks.
For OneCard, getting an NBFC licence would help it build exposure in personal loans and offer other products.
Currently, OneCard offers premium credit cards on behalf of mid-sized lenders like Federal Bank, South Indian Bank and CSB Bank. It also works with BoB Cards,
With its own NBFC, OneCard can use its app to offer retail lending products like check-out finance or buy-now-pay-later (BNPL) options. Even consumers who might not qualify for a credit card, which has very stringent background checks, can be offered small personal loans.
Expand the universe
For any fintech that has managed to scale up the user base, the next big challenge is to retain them and keep them engaged. With the lending licence.
