Unauthorised fintechs, compliance changes pose major risks for sector

Even as lending by financial technology (fintech) companies continues to rise, the sector faces major risks, including the presence of unauthorised fintech lenders, changing compliance norms, and evolving regulations, among others.

Lenders—including banks, non-banking financial companies (NBFCs), and fintech firms—continue to encounter key operational risks such as cyber frauds and crimes, rising costs, unfair conduct practices, and reputational risks,