As the fight for a $1-trillion digital finance market gets highly competitive, Alphabet’s Google announced on Monday, August 27th, that it is partnering with four Indian banks to grant consumer loans online.
HDFC Bank, Kotak Mahindra Bank, Federal Bank and ICICI Bank are the four banks with which the US search giant is forming partnerships individually.
In a statement, Google went on to state, “We are forming a partnership with HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Federal Bank to offer instant, pre-approved loans to customers right within Google Pay in a matter of seconds.”
Traditionally, Fintech companies use data and many algorithms to determine risks before approving a person’s loan, which is seen as a hassle for mobile users who look for small loans with minimal paperwork, regardless of credit ratings.
As a result, Online lending is rapidly becoming the next frontier and internet giants like Facebook’s WhatsApp to Jack Ma’s Ant Financial, are joining a race to provide financial services in the world’s fastest-growing mobile arena.
Also, recently, The California-based company re-branded it’s made-in-India Tez app, that was launched in September 2017, as Google Pay — the catch-all label for its payments services.
At the “Google for India” event that happened in New Delhi, India on Tuesday, August 28th, Caesar Sengupta, the vice-president of Google’s Next Billion Users Initiative and Payments said, “We have noticed that when we build for India, we build for the world.”
According to Google, “Almost 55-million people residing in nearly 300,000 towns and villages have downloaded Google’s payments app to pay repairmen, pay for bus rides, or split dinner bills with friends, that has amounted to almost $30bn in annual transactions.
The internet giant also said that according to Credit Suisse Group, the overall market would expand to $1-trillion in five years from $200bn currently.