“Strong financial support is the revolution needed for the growth of the nation.”
In the past decade, a new platform for financial support and money lenders has shown immense growth, i.e., Non-Banking Financial Companies. The NBFC sector is playing a significant role in transforming the financial system of the country by supporting new entrepreneurs and establishing small and micro business enterprises and making the weaker section efficient and sturdy.
NBFC has targeted the development of core infrastructure, transportation, new employment, and overall economic development of the nation. The sector is focused to help the people at the bottom of the pyramid to make the foundation strong and to keep a balanced economic growth. More and more small and micro enterprises are reaching out to NBFC to fulfill their smaller to bigger financial needs. Along with great products and services, technology also has a big role to play in the expansion of NBFCs by reaching the underserved segments that the banks are unable to reach. By understanding their consumers and creating specialized products NBFCs have created niche business sectors for themselves, which most banks have failed to do so.
The significant growth of the sector is a path towards a fair and balanced growth. Let’s check out the factors behind such enormous growth of NBFC:
- Customization of Products
NBFCs are a lot different from banks in their product line as well as interest rates. While the banks are subjected to comply with the rules and regulations of the RBI, NBFCs have a certain flexibility in that area and can curate customized products and services as per customers’ needs and requirements. Many customers prefer NBFCs over other lending institutions due to the availability of tailor-made products and financial solutions. - Good Use of Technology
With the advancement in technology, NBFCs has become quite tech-savvy and has adapted data analytics and cloud system. NBFCs are proactive in indulging with technology in all their processes and loan application. Easy application, hassle-free process, and quick disbursal are the benefits of online platforms. The incorporation of technology has truly led NBFCs towards growth. - Better Consideration & Analysis of Customer Needs
The target customers for NBFC are relatively widespread and they entail competent market research teams to understand the customer needs and demands. The surveys play a vital role in curating better and customized products in accordance with the financial needs and requirements of different groups and job types. NBFCs are flexible hence, they are able to offer financial support to that section of the population that traditional banks find challenging to do so. - Improvised Risk Management
NBFCs appoint financial experts to analyze different situations and markets, retaining a well-thought and highest standard of risk management in the institution. It helps them to be discreet and secure at every level.
With all the great benefits and varied options for financial support, NBFCs are here to stay and grow along the lines of growth of the people and nation.
