Mr Sanjay Chaudhary
Vice President Marketing, Lentra
Sanjay has over 25 years of experience in developing and executing integrated marketing campaigns for B2B industries. In his current role, Sanjay is leading global demand generation for Lentra, one of the fastest-growing enterprise SaaS companies in India. Previously, he spearheaded Account-Based Marketing (ABM) initiatives for strategic clients and industry segments, specifically within the government and financial services domains, during his tenure at Oracle.
Mr Sanjay Chaudhary at the Defining Responsibility Framework, an India 2047 - Centre of Excellence Workshop
Mr Sanjay Chaudhary
Vice President Marketing, Lentra
Key Points
- Access to credit is essential for economic growth.
- Only about 20% of Indians currently have access to credit.
- Traditional banking faced challenges in reaching rural areas due to high service costs.
- Informal methods of credit fill the gap.
- Digital technology reduces the cost to serve and provides easy access to credit.
- It allows for quick product adjustments and risk management through alternate data usage.
- There has been a surge in digital lending in the past few years due to increased access and sector growth.
- Anticipates self-regulation and self-correction as the sector matures, akin to addressing non-performing asset (NPA) issues in traditional banking.
Recommendations
Enhance Digital Infrastructure
- Continue investing in digital infrastructure to improve access to financial services, especially in underserved areas. This can include expanding Internet connectivity and promoting digital literacy.
Encourage Responsible Lending Practices
- Promote responsible lending practices among financial institutions by incentivising adherence to ethical standards and consumer protection guidelines.
- This can be achieved through industry-wide initiatives and regulatory frameworks.
Facilitate Data Accessibility
- Encourage the development and use of alternate data sources for credit assessment to reach individuals without traditional credit histories.
- Ensure data privacy and security measures are in place to protect consumer information.
Support Innovation
- Foster an environment that encourages innovation in digital lending while ensuring adequate safeguards against risks such as fraud and over-indebtedness.
- Support start-ups and fintech companies that are developing innovative solutions for financial inclusion.
Promote Self-Regulation
- Encourage self-regulation within the digital lending industry by fostering collaboration among industry stakeholders to establish best practices and standards. Self-regulatory bodies can play a crucial role in promoting transparency and accountability.
Strengthen Regulatory Oversight
- Strengthen regulatory oversight to ensure compliance with existing regulations and address emerging challenges in the digital lending sector.
- Regulatory authorities should stay abreast of technological advancements and adapt regulations accordingly.
Invest in Financial Education
- Promote financial education and literacy initiatives to empower consumers to make informed decisions about borrowing and managing their finances. Educated consumers are better equipped to navigate the digital lending landscape responsibly.
Monitor NPA Trends
- Continuously monitor trends in non-performing assets (NPAs) and take proactive measures to address any emerging risks in the digital lending sector. Early detection and mitigation of NPA issues are essential to maintaining the stability of the financial system.
