An Agile Cash Management Solution for Innovating NBFC Operations

    The Non-BankingFinancial Companies (NBFCs) are financial institutions that deliver various banking services without a banking license. By principality, these institutions are forbidden from taking traditional demand deposits, that is, readily available finds such as those in savings or checking accounts, from the public. Albeit this limitation keeps them outside the scope of conventional oversight from state and federal financial regulators, they act as lifesavers by meeting the credit demand unmet by the traditional banks.
    Mortgage lenders, insurance companies, investment banks, money market funds, private equity funds, hedge funds, and P2P lenders play the role of NBFCs in the country today.
    For a long time, the Indian SME sector had few options to avail loans since the availability was not very wide-spread. However, the current spurt in fintech lending through companies like Payworld that collaborate with NBFCs, one can envision a promising future for the SME sector.
    The Game-Changer
    The digital transaction facilitator Payworld has come up with its cash management solution to focus on insurance and small ticket loan disbursal as its next phase of the growth story. The company has tied up with insurers and NBFCs to bring the plan to fruition, by tapping potential customers.
    In the first three months of the CMS launch, Payworld was able to disburse Rs.10 crores to the micro and small enterprises, through its fruitful partnership with the NBFCs as mentioned above.
    According to the proposed cash management solution, Payworld offers an average loan ticket size of Rs. 30,000 to Rs. 50,000, while the average loan amount for the end-users is below Rs. 10,000.
    Payworld's partnership with various NBFCs greatly benefits both the B2B and B2C sectors. For instance, merchants can now grow their businesses at the click of a button by applying for loans on Payworld’s digital portal. While behind the screens, Payworld’s strategic tie-ups with the NBFCs make the loan processing seamless and manageable through its AI-powered intelligent loan platform. This platform is integrated with Aadhar and India Stack capabilities to achieve paperless disbursement.
    A Fertile Collaboration
    Payworld predominantly targets its cash management solution towards those who are excluded from the financial net - the unbanked denizens. The company believes that there lies a great opportunity among those people as much as the plentiful challenges.
    However, Payworld’s colossal retailer base sheds positivity. With over 725,000+ Retailers all over India, Payworld is bringing the bank to the unbanked. Many NBFCs are sensing the fertile grounds and reaching out to Payworld to disburse loans and are also leveraging their retailer outlets as their touchpoints for the collection of EMIs. Thus, Payworld is reducing the gap between the NBFCs and customers.
    Payworld now strives toward extending its partnership to other NBFCs in the country to serve its cause. Following is a brief outline of the edge Payworld offers its NBFC partners.
    Large Retailer Network
    As mentioned already, 725,000+ retailers are working with Payworld in the second, third, and fourth-tier cities. The company aims to rope in more retailers in subsequent times.
    Operations Beyond Non-Banking Hours
    Most of the Payworld retailers own their small businesses and offer cash management solutions, billing solutions, etc. So, they work beyond traditional banking hours.
    Maximum Pin Code Coverage
    As the country’s leading fintech company, Payworld covers the maximum pin codes from the following states: West Bengal, Rajasthan, Punjab, Uttar Pradesh, Bihar, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Gujarat, Chhattisgarh, Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, and Telangana.
    No Recovery Agent Cost
    Under the cash management solution, the most significant benefit for the NBFCs is facile and seamless cash collection sans recovery agent cost.
    The Call
    As Payworld is striving to digitize the remotest parts of the country, the company welcomes NBFCs to partner with them and avail the cash management solution to tap the potential customers.