Learning Objectives:

  • Explain digital lending models and regulatory guidelines.

  • Understand robo-advisory and automated wealth management.

  • Describe InsurTech and its applications.

4.1 Digital Lending Models
The FinTech ecosystem in India includes payments, lending, InsurTech, and WealthTech . Digital lending models include:

  • Peer-to-Peer (P2P) Lending: Platforms connecting individual lenders with borrowers .

  • Buy-Now-Pay-Later (BNPL): Short-term financing for purchases, often at the point of sale .

  • Instant Loans via Apps: Mobile applications providing rapid loan approvals and disbursements .

  • AI and ML in Credit Scoring: Using artificial intelligence and machine learning to assess creditworthiness more accurately .

4.2 Robo-Advisory and WealthTech
Robo-advisors are automated investment platforms that provide financial advice and portfolio management with minimal human intervention . WealthTech refers to technology-driven wealth management solutions . Robo-advisors use algorithms to:

  • Assess risk tolerance

  • Construct diversified portfolios

  • Rebalance investments automatically

  • Provide tax-loss harvesting 

4.3 InsurTech and Insurance Innovation
InsurTech is the application of technology to the insurance industry . Key innovations include:

  • Usage-Based Insurance: Premiums based on actual usage (e.g., telematics in auto insurance).

  • On-Demand Insurance: Coverage purchased for specific periods or events .

  • Digital Claims Processing: Automated claims settlement using AI and data analytics .

 
PreviousNext