Two things that comes to my mind regarding this business model,
One I think the segment they cater to i.e: banks and nbfc are different – example the loan realisation amount per gram of gold and tenure is different for both guys, so interest rate is inversely proportional to the loan amount per gram.
Two, though I m sure they would have taken insurance and put adequate measure against theft being carried on the transit, still I feel like people would prioritize the safety more . Ex: customer may not be able to tell that the gold returned from loan/locker is original not a counterfeit
Ofcourse people who are in the business will figure out a way to earn the trust eventually
However, Facilitator such as shouldn’t disrupt the business of the likes of muthoot and manapuram, atleast not in near to medium due to stringent regulatory environment we are currently in (Paytm saga).
But they can tie up with the platform such as this (indiegold) once and if they are successful, like after it’s adopted as a norm by the general public
So all in all, I don’t see them or any sort of tech driven player especially in finance as threat to any conservative lenders (with better asset quality), atleast not in the medium term.
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