From Deutsche Bank to InCred: Bhupinder Singh's 9,000 CR Journey

Why Bharat Trusts Chai Tapri Credit More Than Banks Unsecured lending has always been the toughest nut to crack. Ask any NBFC or fintech founder: a. Default rates are high. b. CAC is high. c. Trust is low. Despite all the tech, KYC, and AI models → the real challenge is simple: How do you lend to someone you don’t fully know? Banks struggle here. Fintechs are still figuring it out. But you know who cracked this decades ago? The chai tapri. The PAN-wala. The kirana store. The Tapri Credit Model At a chai tapri, you finish tea and simply say: “Likh lo.” No documents. No credit bureau. No penalty clause. The chaiwala notes it in his diary. Next week, you come back and settle the dues. It works. Every single day. Across Bharat. Why Does This Work? Because the chaiwala runs on relationship lending. a. He sees you daily. b. He knows your family. c. He knows your reputation in the community. If you don’t pay, you lose more than ₹50. You lose face. That social collateral is stronger than any CIBIL score. Who Is Bharat? When I say Bharat, I mean the 500M+ Indians in Tier-2, Tier-3 towns, and villages. For them: a. A loan from a bank feels alien. b. An English app feels intimidating. c. But “chai tapri credit” feels safe. Because it’s built on trust, not T&Cs. The Scale of Informal Credit a. India has 60M+ kirana/tapri shops extending informal credit daily. b. This market is worth $200B+ annually. c. Compare that with bank penetration in semi-urban/rural India → you’ll see why tapri credit wins. If fintech wants to win Bharat, it has to borrow from the chai tapri playbook: a. Small trust tickets → Start with ₹100–₹500 commitments, not ₹50K loans. b. Local cues → Language, nudges, and familiar UX. c. Reputation as data → Community trust signals can be digitized. Because in Bharat, your reputation is your credit score. Banks and fintechs are still trying to solve unsecured lending with models and algorithms. But the chaiwala solved it long ago with trust, relationships, and social accountability. That’s why Bharat trusts chai tapri credit more than any bank form or app screen. I work with fintech founders, NBFCs, and investors who want to bridge this trust gap scaling what works at the chai tapri into sustainable, responsible financial products. If you’re building for Bharat or backing those who are, let’s connect. Because the future of Indian fintech won’t just be coded in offices it’ll be inspired by the lanes where chai tapris run credit better than banks.

𝗗𝗮𝗶𝗹𝘆 𝗙𝗶𝗻𝘁𝗲𝗰𝗵 𝗡𝗲𝘄𝘀 𝗨𝗽𝗱𝗮𝘁𝗲 - 𝟮𝟵-𝗦𝗲𝗽-𝟮𝟬𝟮𝟱 - 𝗜𝗻𝗱𝗶𝗮’𝘀 𝗰𝗿𝗲𝗱𝗶𝘁 𝗲𝗰𝗼𝘀𝘆𝘀𝘁𝗲𝗺 𝗶𝘀 𝗲𝗻𝘁𝗲𝗿𝗶𝗻𝗴 𝗮 𝗻𝗲𝘄 𝗲𝗿𝗮 𝘄𝗵𝗲𝗿𝗲 𝗻𝗼𝗻-𝗯𝗮𝗻𝗸 𝗰𝗵𝗮𝗻𝗻𝗲𝗹𝘀 𝗮𝗿𝗲 𝘁𝗮𝗸𝗶𝗻𝗴 𝗰𝗲𝗻𝘁𝗲𝗿 𝘀𝘁𝗮𝗴𝗲 𝗮𝗹𝗼𝗻𝗴𝘀𝗶𝗱𝗲 𝘁𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗯𝗮𝗻𝗸𝘀. India’s financial landscape is undergoing a fundamental shift as credit delivery increasingly flows through non-bank channels. While banks remain central to the system, recent RBI data highlights that nearly half of corporate sector funding in FY25 came from non-bank sources such as NBFC loans, corporate bonds, equity, and foreign investment. This signals a maturing ecosystem where companies are less dependent on traditional bank lending and are instead leveraging diverse financing avenues. NBFCs have emerged as pivotal players in this transformation. Lending rose 20 per cent year-on-year to ₹6.1 lakh crore in FY25, reflecting their agility, localized reach, and ability to cater to underserved segments. By adopting digital tools, alternative data, and AI-driven underwriting, NBFCs are expanding credit access for MSMEs, small entrepreneurs, and thin-file customers who often remain beyond the radar of conventional banks. Their product innovation and contextual understanding position them as strong complements to the banking sector. Equally important is the diversification of NBFC funding sources. Beyond bank borrowings, NBFCs are increasingly tapping bond markets, securitisation, and co-lending partnerships, which enhance their resilience and reduce reliance on any single funding channel. The RBI’s rollback of higher risk weights on bank lending to NBFCs has further lowered funding costs, while open tap bank licensing promises to spur competition and collaboration across banks, NBFCs, and fintechs. Looking ahead, embedded finance is expected to be the next growth lever. By integrating credit within platforms such as e-commerce, mobility, logistics, and government-backed frameworks like ONDC and Account Aggregator, embedded finance will make borrowing more seamless and contextual. Together, non-bank channels, NBFC innovation, and digital-first models are reshaping India’s credit architecture, broadening access, and reinforcing systemic resilience. 𝗞𝗲𝘆 𝗵𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:  ✦  Non-bank sources contributed nearly 49 per cent of corporate sector funding in FY25, driven by equity, bonds, and FDI.  ✦  NBFC lending grew 20 per cent, underscoring their growing role in serving MSMEs and underserved borrowers.  ✦  Diversification of NBFC funding via bonds, securitisation, and co-lending enhances stability and reach.  ✦  Embedded finance and regulatory reforms are set to accelerate innovation, competition, and credit accessibility. 𝘍𝘪𝘯𝘥 𝘧𝘶𝘭𝘭 𝘯𝘦𝘸𝘴 𝘢𝘳𝘵𝘪𝘤𝘭𝘦 𝘭𝘪𝘯𝘬 𝘪𝘯 𝘵𝘩𝘦 𝘧𝘪𝘳𝘴𝘵 𝘤𝘰𝘮𝘮𝘦𝘯𝘵. #IndiaEconomy #CreditGrowth #NBFC #EmbeddedFinance #FinancialInclusion #RBIUpdates #DigitalFinance #CapitalMarkets

Fintech has flung open credit doors, which is fantastic for financial inclusion. But are we fostering healthy relationships, or just pushing borrowers into commitments they’re not ready for?    Defaults are climbing, yet a shocking 90% are preventable with timely intervention – think flexible plans, early distress signals. This isn't just good ethics; it's building a stronger financial future for everyone involved. In the latest edition of The Pattern, Mayank J. talks about responsible lending and why proactive support is the ultimate vow. Read here - https://lnkd.in/gBbrEsrs #ResponsibleLending #Microfinance #NBFCs #FinancialInclusion 

Lenders are getting cautious. As early stress signals emerge in MSME credit — particularly in small-ticket loans — banks and NBFCs are tightening their underwriting norms and leaning on data-driven risk models. From e-rickshaw loan adjustments to new AI-based credit scoring tools, the MSME lending landscape is entering a phase of recalibration. 🔗 https://lnkd.in/dbnwrUXW #MSMECredit #NBFC #Fintech #SMELoans

Nova Credit draws capital to expand to new loan types The capital comes as cash flow underwriting gains new popularity with some of the nation's largest financial institutions, such as JPMorganChase and PayPal. https://buff.ly/wPUZWUe #FinTech #FinServ #Banking

🔹 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝗔𝗻𝗻𝗼𝘂𝗻𝗰𝗲𝗺𝗲𝗻𝘁🔹 Community Capital Technology | CCT x Delfi 𝘋𝘦𝘭𝘪𝘷𝘦𝘳𝘪𝘯𝘨 𝘐𝘯𝘴𝘵𝘪𝘵𝘶𝘵𝘪𝘰𝘯𝘢𝘭-𝘎𝘳𝘢𝘥𝘦 𝘈𝘯𝘢𝘭𝘺𝘵𝘪𝘤𝘴 + 𝘚𝘦𝘢𝘮𝘭𝘦𝘴𝘴 𝘔𝘢𝘳𝘬𝘦𝘵𝘱𝘭𝘢𝘤𝘦 𝘌𝘹𝘦𝘤𝘶𝘵𝘪𝘰𝘯 𝘵𝘰 𝘌𝘷𝘦𝘳𝘺 𝘍𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘐𝘯𝘴𝘵𝘪𝘵𝘶𝘵𝘪𝘰𝘯 We are thrilled to announce our strategic partnership with Delfi Labs Inc. - combining the strength of Community Capital’s nationwide loan marketplace with Delfi’s AI-powered, institutional-grade portfolio analytics to create the industry’s first fully integrated solution for balance sheet decisioning and execution. This partnership is rooted in a shared belief: community-based banks, credit unions, and lenders are vital to our country’s economic vibrancy and resiliency. By bringing sophisticated analytics, actionable insights, and seamless marketplace access together in one place, we’re empowering institutions of every size to compete with confidence, in a cost-effective, easy-to-use, and action-oriented way. What this partnership means for banks, credit unions, originators, and investors: ▪  𝗜𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝗮𝗹-𝗴𝗿𝗮𝗱𝗲 𝗮𝗻𝗮𝗹𝘆𝘁𝗶𝗰𝘀: portfolio- & loan-level insights powered by Delfi’s AI-driven models ▪  𝗦𝗺𝗮𝗿𝘁𝗲𝗿 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝗶𝗻𝗴: identify risks, uncover opportunities, and act with precision ▪  𝗦𝗲𝗮𝗺𝗹𝗲𝘀𝘀 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝗼𝗻: integrated access to CCT’s marketplace to buy, sell, participate, or originate loans ▪  𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝗶𝗲𝘀: enabling better capital access and liquidity across the entire ecosystem We are proud to partner with the exceptional Delfi team (including: Daniel P. Ahn, Joseph Ahn, PhD, Alexander Demyanets, Will Lunden, Tomoya Nishida) not just for their brilliance and transformative insights, but for their integrity, mission-driven approach, and commitment to empowering this critical sector. Together, we are dedicated to helping financial institutions maximize their impact, strengthen their balance sheets, and better serve their communities. Our CEO, Garrett Smith notes: “By uniting world-class analytics with seamless execution, we’re helping every institution, large or small, compete on an equal playing field. Together, we’re driving better liquidity, smarter decisioning, and broader access to opportunity.” This is more than just a partnership – it is a step forward for the entire financial ecosystem. We cannot wait to share more about what we are building together... 🔗 Learn more: https://lnkd.in/ecEdPgxv #CommunityCapital #Delfi #FintechPartnership #BalanceSheetManagement #AIAnalytics #LoanMarketplace #LiquiditySolutions #DigitalTransformation 

🚀 Delfi is proud to join forces with Community Capital Technology | CCT to bring smarter balance sheet analytics and seamless loan marketplace execution to financial institutions of all sizes.

Banking is more than just commercial transactions; it involves personal experiences and relationships with specific banks. Investors often choose their banks based on preferences and convenience, leading to a critical question: should distressed private banks be rescued by public sector banks (PSBs)? While this option exists, it may not be the most beneficial solution. The primary strategy should focus on attracting private investors to infuse capital. A notable case is Yes Bank, which was bailed out in 2020 with the State Bank of India (SBI) becoming the majority shareholder. This topic opens up a vital discussion on the arguments and counterarguments regarding the best strategies to address the challenges faced by distressed private banks. Beneath the "YES mess" lies a stark truth: the independent director fallacy. There is a recurring pattern in the failure of promoter-run firms, and Yes Bank is no exception. Listed companies are managed by boards, with a CEO and Managing Director accountable to the Board. However, the Board of Directors often functions in a perfunctory manner. Independent directors, typically retired bureaucrats, former public sector heads, diplomats, and generals, hold these positions. Yet, when they raise concerns about any impropriety, they are often dismissed. In instances where family-controlled or promoter-run businesses misuse company funds to benefit other companies linked to the promoters, minority institutional shareholders frequently remain silent as long as they receive attractive returns on their investments. Conversely, common shareholders tend to overlook such transgressions, believing that promoters are savvy enough to use some of these proceeds to eliminate bottlenecks. Public institutions, including private hedge funds, mutual funds, pension funds, and government insurance companies, may also see some of these diverted funds end up in the private pockets of promoters, as long as loans are serviced, statutory dues are cleared, and the company thrives with rising share prices. Improving regulatory checks is the only way out . corporate transgressions happen in the west too but regulators do no spare the promoters eg in 2019 Elon musk was asked to step down as Chairman if Tesla by the US securities and exchange commissions and was penalized for issues related to insider trading. all is well that ends well With the challenging issues like Recovery of Bad Debts the new entity Bank State Bank of India bailed out Yes Bank and yes bank is now considered safe . While after the global financial crisis, the idea was always to have no bank which is too big to fail ,the reality is the inter-connectedness between banks themselves including mutual funds ,insurance companies,non banking financial companies and the real economy is so deep that you know, We can argue about what could have been the best approach .

Banks say fintech rivalry failed to cut borrowing costs | Markets | valorinternational - Globo: Lenders blame sky-high rates on funding and delinquency, while fintechs argue they expanded financial inclusion and cut rates by an average of ... #finpeform #fintech

Finance Minister Nirmala Sitharaman’s recent call to ramp up lending to micro, small, and medium enterprises (MSMEs) through increased partnership between non-banking financial companies (NBFCs) and public sector banks (PSBs) is a timely nudge. - Earlier, at the NBFC Symposium, she advised that every lead bank in each state should convene a meeting with all NBFCs to explore ways to enhance such partnerships. - To translate this into action, industry bodies like FIDC and IBA need to work together to create a structured roadmap. - These collaborative discussions should be anchored by the Department of Financial Services (DFS), Ministry of Finance, for effective implementation. Raman Aggarwal | Priya Ranjit #FIDC #MSMEFinance #NBFC #PSB #FinancialCollaboration #CreditEcosystem #EconomicGrowth #FinanceLeadership #FinancialInclusion #BankingPartnerships Read:- https://lnkd.in/guH5TSBB