Digital Lending: The Phenomena Of Intermediation Through Disintermediation

Abstract

The context of lending companies has changed substantially over the course of the past century, from the days when pawnshops would lend money in exchange for collateral to the present day when sophisticated technology are used to carry out credit underwriting. It is quite difficult to find a financial institution that is still operational in this day and age that has not digitized at least one part of the loan process. It is appropriate to conclude that the traditional "brick and mortar" model for the lending company will soon be a thing of the past due to the quick breakthroughs being made in areas such as blockchain technology, artificial intelligence, and cloud computing. Additionally, internet connectivity is becoming faster and more affordable. The purpose of this paper is to investigate the growth, current scenario, and regulations governing digital lending in India.