5 FinTechs deriving financial access for the underserved in India

By Gloria Mathias

Gaining access to finance has been a long-standing challenge in India, particularly for those often overlooked by traditional financial institutions. According to the World Bank, over 190 million adults in India remain unbanked, highlighting a significant gap in financial inclusion.

As India celebrates its 78th Independence Day, the nation stands at a pivotal moment. It has reached a stage where it is better equipped to serve its underserved segments. This progress reflects the strength and resilience of a country committed to ensuring that every citizen can thrive.

The underserved population often faces hurdles such as a lack of credit history, limited access to formal financial services, and complex application processes. In response, a wave of innovative fintech companies has emerged, offering solutions designed to bridge this gap and bring financial services to those who need them most. These FinTech solutions are leveraging technology, data analytics, and customer-centric approaches to create more inclusive financial ecosystems.

Here are 5 FinTechs creating a significant impact on financial inclusion in India:

• RupeeRedee:

Incepted in 2018, RupeeRedee is a digital lending platform that leverages advanced technology and data sciences to make lending accessible for India’s massive population of underserved customers. With over 1 crore downloads and 400K average monthly website traffic, RupeeRedee ensures a robust KYC process and a seamless user experience, providing personal loans within minutes. Their innovative approach includes alternate data sources for underwriting, going beyond traditional credit scores. Backed by its captive NBFC, FincFriends Private Limited, RupeeRedee adheres to the Fair Practice Code and stringent compliance processes to deliver unparalleled customer satisfaction.

• Freo:

Formerly known as MoneyTap, Freo offers India’s first app-based credit line, providing users with instant access to credit ranging from ₹3,000 to ₹5,00,000. Launched in 2015, Freo focuses on providing flexible, affordable, and easy-to-access credit to underserved segments. The platform boasts instant approval and flexible repayment options, operating on a unique, no-interest model. Through partnerships with major banks and NBFCs, Freo ensures a seamless and reliable lending experience for its users.

• Faircent

Faircent is one of India’s peer-to-peer (P2P) lending platforms. It connects borrowers directly with lenders and eliminates the need for traditional intermediaries. Faircent focuses on providing affordable credit to underserved segments by leveraging technology to assess risk and facilitate transactions. The platform offers competitive interest rates and rigorous credit assessment using alternative data, ensuring transparency and fairness in the lending process.

• KreditBee:

KreditBee is an instant personal loan platform catering to young professionals. It uses a completely online process to approve and disburse loans within minutes, making it accessible to a wider audience. Loan amounts range from ₹1,000 to ₹2,00,000, with quick disbursal and flexible tenures. KreditBee places a strong emphasis on security and data privacy, ensuring a safe borrowing experience with minimal documentation requirements.

• Lendbox:

Lendbox is a prominent P2P lending platform in India that aims to provide accessible and affordable credit to individuals and small businesses. Using advanced algorithms to assess creditworthiness, Lendbox matches borrowers with appropriate lenders, offering a quick and easy loan application process. The platform provides personalized loan offers and a diverse range of loan products, focusing on financial inclusion through innovative credit assessment models.