New Delhi: Paytm is an Indian fintech company that now pays heavy emphasis on its lending operation, following the previous regulatory issues. The company is currently trying to stabilise business and enhance relationship with banks and other financial institution.
Paytm had restrictions associated with the bank unit of payments last year. This brought about the doubt among the investors and customers. The company has however been keen to rectify compliance in an effort to regain confidence.
Meanwhile from now Paytm is laying additional emphasis on credit distribution, merchant loans, and personal loans. The company is not lending directly but is, instead, playing a platform role of matching customers with the partner banks and NBFCs. Which minimizes the financial risk and enables Paytm to get commission on revenue.
Analysts believe the fintech businesses in India are moving towards a more controlled stage. Governments desire greater compliance and optimal risk management. In the case of Paytm, it will be slower and more stable growth.
