Fostering Financial Collaboration: Exploring Partnerships between Banks & NBFCs

Deepak T R explains that Scolend can enable collaborative lending by streamlining processes and facilitating smooth communications between banks and NBFCs

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A conversation between Manoj Agrawal from Banking Frontiers and Deepak T R from SimSol Technologies about co-lending between banks and NBFCs:

Manoj: Partnerships between various industries are maximizing customer convenience and driving business growth. What’s your view on collaboration between banks and NBFCs?

Deepak: Banks and NBFCs have indeed been collaborating in India for a considerable time, but their working models differ significantly due to distinct regulatory frameworks. Despite their similar product offerings, these financial entities operate with varying internal structures. However, I see an increasing scope for collaboration as it presents an opportunity to tap into a broader population. The Reserve Bank of India has recognized this potential and issued guidelines for co-lending, intending to foster more inclusive development in the financial sector. By forging strategic partnerships, banks and NBFCs can leverage their respective strengths and address the diverse financial needs of a wider customer base.

Manoj: True, NBFCs are good at sourcing customers, and banks at sourcing funds. Can they find a way to collaborate effectively?