India has ~60% financial inclusion, that is ~40% people do not have a bank account. But only 14% have ever taken ANY loan, including unorganised channels like loan sharks. Real financial inclusion means bringing people in the formal fold of Banking and Finance and given more than 60% of India’s population earns less than Rs. 80 per day, they are left with barely any savings to put in the bank account. Hence opening new banks accounts does not attack the real problem of Financial Inclusion. FinTech in India has been a hot topic. Given the recent trends we have seen in rapid innovations happening in the FinTech space in India, it doesn’t seem far when India will become an industry leader in this category.
One startup that is tirelessly working towards this direction is Finomena. Finomena provides access to flexible credit to a large segment of India’s young demographic. You can buy mobiles, laptops, home appliances, furniture and more on EMI without credit card. Finomena aims to radically change the end-to-end customer experience of a borrower, for their personal and professional growth, and make young Indians more financially independent and financially literate, thus revolutionizing the way banking is done for today’s smartphone generation. They understand that not everyone possesses a credit card, and hence, you can buy anything on EMI using your debit card.
Founded by Ridhi and Abhishek in the year 2015, Finomena is based out of Bangalore. Riddhi, comes from a very complimentary and very strong tech experience from Silicon Valley. Having graduated from one of the best universities in the world – Stanford in Computer Science, she went on to work with Global Tech giants such as Microsoft and Facebook in California. She understands the value that data can bring in assessing creditworthiness using advanced Machine Learning and AI concepts which she learnt in her Masters in Computer Science program at Stanford. Abhishek, comes from hard core financial services background, having passed out of IIT Delhi, worked with UBS Investment Bank in HK, spent 2 years in BCG’s Financial Services practice advising top Indian banks and NBFCs on their future strategy and then worked in global PE fund – Bain Capital with focus on Investing in FIs in India. They have an able team of 80+ and all of whom consist of people from diverse backgrounds including those from finance, psychology, engineering, humanities, management etc. The Head of Engineering at Finomena comes with a decade of experience in companies like Flipkart, Codenation etc. This brilliant yet diverse combination makes their team ready to take on almost any challenge that can be thrown at them at this moment in the fintech space, and continuously pioneer innovation.
Finomena is using data and ML to reassess the creditworthiness of 70 crore young Indians and innovating on disbursal of credit via online / mobile channels. They want to bring Financial Inclusion to a country of 125 crore people by focusing on “small tenure, small ticket size, unsecured” retail lending. And for that, technology has to deeply disrupt every stage of lending (sourcing, analyzing, approving, servicing), so that disbursing loans at scale for such small amounts becomes viable. In addition to having a smoother lending experience for the top 15% of Indians who can get loans today, they actually want to solve the problem for those who will not be considered creditworthy through traditional means of risk-assessment used today, and help them get access to credit.
Finomena provides flexible monthly installment options to it users, customisable EMI plans, lowest interest rates among competitors, ability to buy anything on EMI without a credit card, No CIBIL score needed and paperless processing. As a result of these options, there have been more than 250k app installs on Play Store, within less than a year. Not just that, they are ranked no. 1 in Alexa Traffic Rank among all competitors, they have attained the ‘Superstartup’ tag by Superbrands, they have been counted in top 17 startups in 2017 by TOI and among the top 10 mobile startups featured by YourStory MobileSparks. They have also been nominated as the finalist for ‘International Innovator of the year award’ by LendIt USA.