From a Motilal Oswal Research Report dated 13 March 2024 available in public domain:
On AIF / PMS:
CAMS commands ~ 50 % market share among AIF / PMS funds utilizing RTA services
On ThinkAI
Data, Algorithm, and Applications are the three pillars of AI. The share of digital lending now accounts for 30 % + of all lending and fintechs, providing 95 % + digital lending solutions.
Among others, Think360’s flagship alternative credit scoring product, Algo360, is India’s leading alternate data solution, which powers income estimation and risk estimation based on device data. CAMS and Think360 bring exciting synergetic opportunities, (its “GenAI” capability completed its first engagement with an international client) to transform customer onboarding and drive smarter decisions.
Management expects this business to scale up exponentially given its low base. As of 9MFY24, this business contributed 1.6 % of the total revenue.
On Account Aggregator
The National Financial Information Registry (NFIR; announced in Union Budget 2023-24) aims to change the way credit is distributed and underwritten to new-to-credit (NTC) and underbanked borrowers. The focus is to facilitate cash flow-based lending and economic inclusion. The AA network went live in Sep’21 and is still in its nascent stages. NFIR, when integrated with the AA system, will have a game-changing impact on the domestic financial services industry.
On Insurance Repository
The potential e-insurance policy market size is ~ 500 m and the revenue potential is likely to be ~ INR 5b annually. Considering the competition, even if the prices deplete by 50 %, the market size is expected to be ~ INR 2.0-2.5b annually.
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