Fintech firm ZestMoney has revealed in a study conducted among 5 million registered customers that EMI financing has grown over 1000% in tier III cities over the past one year, bypassing the combined growth of tier I and II cities of India.
“EMI financing is the key to enable masses in realising their aspirations without financial limitations. Tier II & III cities constitute majority of the Indian population, and being able to cater to this section of our society is critical for the growth of fintech companies,” said Lizzie Chapman, CEO, ZestMoney.
The study also revealed that in the year 2018-19, 46% of EMI financing was availed by borrowers from Tier-III cities, while 54% per cent was from customers in Tier I & II cities. This showcases the growing depth of fintech financing in India.
“Digitally enabled lending, coupled with the penetration of data has opened up even the smallest towns for us. We are observing a steep increase in consumers from smaller towns such as Patna, Lucknow, Indore, Bhopal, Jaipur, Ahmedabad and other towns. Smaller cities continue to be our prime customer acquisition target for this year as well," Lizzie added.
ZestMoney’s platform uses mobile technology, digital banking and Artificial Intelligence to make life more affordable to millions of Indian consumers, the company claims.
