Mr Nipun Kohli
Co-Founder, FinAGG
Mr Kohli has 20 years of experience in the Business, Strategy and IT industry with experience in building FinTech products and supply Chain Finance. He has domain expertise (functional and technical) in Finance, Digital, omnichannel, Multi-Channel, E-commerce, Supply Chain Management Execution (SCM) and 3PL Logistics. He has worked with startups, FinTech Retail, CPG, Logistics & 3PL organisations in setting up IT Strategies as CIO and Chief Strategy Officer and executing them. He has experience with Business Consulting and IT Strategy & package implementations across the globe with Retail, Pharmacy, Manufactures, FMCG, Logistics Service Providers, 3PL Service Providers, Bonded Warehouse, Logistics Parks, FTWZ, and SEZs.
Mr Nipun Kohli at the Defining Responsibility Framework, an India 2047 - Centre of Excellence Workshop
Mr Nipun Kohli
Co-Founder, FinAGG
Key Points
- Implement regulations that ensure digital lending platforms provide borrowers clear and easily understandable information regarding loan terms, interest rates, fees and repayment structures.
- Encourage partnerships between digital lending platforms and established corporations to facilitate ecosystem-based lending. This approach can help mitigate fraud and increase trust by leveraging the reputation and resources of larger entities.
- Develop regulatory frameworks that promote data analytics, including GST filing data and transaction histories, to identify patterns indicative of fraudulent activity. Encourage digital lending platforms to adopt advanced analytics tools for more effective fraud detection and prevention.
- Ensure that loans are specifically designated for productive purposes, such as inventory purchase or business expansion, to reduce the risk of misuse and fraud.
- Utilise social media and other platforms to disseminate educational content to a wide audience.
- Strengthen regulatory oversight of digital lending platforms to ensure compliance with existing regulations and guidelines..
- Regular audits and inspections can help identify non-compliant practices and enforce corrective actions to protect borrowers' interests.
- Foster a culture of continuous evaluation and adaptation in the regulatory framework for digital lending.
Recommendations
Enhance Regulatory Oversight
- Strengthen regulatory oversight of digital lending platforms to ensure compliance with existing regulations and guidelines. This includes monitoring interest rates, fees, and lending practices to protect consumers from predatory lending practices.
Transparency and Disclosure
- Mandate digital lending platforms to provide transparent and comprehensive information to borrowers about loan terms, interest rates, fees, and repayment options.
- Implement standardised disclosure requirements to improve transparency and facilitate informed decision-making by borrowers.
Responsible Lending Practices
- Encourage digital lending platforms to adopt responsible lending practices, including thorough assessment of borrower creditworthiness, affordability checks, and adherence to fair lending principles.
- Promote using alternative data sources for credit assessment to expand access to credit for underserved populations.
Fraud Prevention Measures
- Develop robust fraud prevention measures, such as identity verification, KYC (Know Your Customer) procedures, and real-time monitoring of suspicious activities.
- Collaborate with law enforcement agencies and financial institutions to combat fraud and protect consumers from identity theft and financial scams.
Financial Education Initiatives
- Launch financial education initiatives to empower consumers with knowledge and skills to make informed financial decisions.
- Provide resources and tools to help borrowers understand their rights and responsibilities when using digital lending services, including debt management and financial planning.
Partnerships and Collaboration
- Foster partnerships and collaboration between regulators, industry stakeholders, and consumer advocacy groups to address common challenges and promote best practices in the digital lending sector.
- Share data, insights, and expertise to facilitate evidence-based policymaking and regulatory interventions.
Continuous Monitoring and Evaluation
- Establish mechanisms for continuous monitoring and evaluation of the digital lending landscape to assess the effectiveness of regulatory interventions and identify areas for improvement.
- Conduct regular reviews and assessments to stay abreast of evolving trends, emerging risks, and technological advancements in the industry.
