Hi @arjunbadola
I am curious on your comment that technology has improved and is impacting Manappuram’s market share, can you elaborate on that?
I understand, borrower still has to go to the branch to pledge the gold. Fintechs tried to offer at home gold loans, but trust deficit allowed traditional players to thrive.
NBFCs like IIFL, Shriram etc and many banks have entered this space in the last 3 years and both Manappuram and Muthoot lost market share, but now, most of the banks (specially SFBs) are falling back as the opex in this business is a dedicated expense and relatively higher vs other personal loans. Further, the recent spurt in gold NPAs has turned out to be another sour point.
I dont think technology has really impacted this business, only the backoffice processing has gotten faster, which is an industry wide phenomenon.
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