Source: Financial Express
Paytm has unveiled a plan to broaden its financial services. Instead of Focusing on short ticket price loans Paytm has started focusing on merchant loans and personal loans of bigger ticket sizes on Wednesday, December 6, 2023. This expansion comes as a result of robust portfolio performance and the widespread acceptance of Paytm's loan distribution services.
One97 Communication has decided to continue to add banks and NBFCs as its lending partners for its loan distribution business. Paytm’s management shared its plan to partner with newer lending partners and bring on board two more NBFCs and one bank in the coming few quarters, in an analyst call on loan distribution business.
Further, merchant loans, which are given to MSMEs as business loans, will continue to be a focus for Paytm. As these loans are given for business purposes to small merchants, they don’t get impacted by the recent regulatory guidance.
Paytm spokesperson said, “As the lending distribution business is maturing, we see newer opportunities of expansion to offer high-value personal and merchant loans. We will continue to focus on originating the high portfolio quality for our lending partners, along with strict adherence to risk and compliance. We have seen great scale and acceptance for our loan distribution business, so we believe this expansion will further aid us to grow the business.”
The step of expansion of financial aid services for larger ticket sizes might prove to be a successful step for Paytm. As the company has experienced growth in this sector it has expanded its services. he company will now reduce the prominence of loans below ₹50,000, with a particular focus on the post-paid loan product, as it becomes a smaller part of Paytm's overall loan distribution business going forward. The move by the company to recalibrate its loan portfolio origination will turn out to be the biggest decision for the fintech companies.
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