Cibil’s sandbox contest to promote lending by fintechs

Mumbai: Credit bureau TransUnion Cibil has launched a sandbox contest to get fintechs find solutions for problems in delivering small loans and make it easier for regulated entities to lend in this space. The move comes at a time when app-based lenders are facing heat on account of illegal practices by unregulated lenders.
A sandbox allows pilot projects by providing a limited easing of regulatory restrictions that come in the way of new products or services.The TransUnion Sandbox Experience is designed for the fintech lending ecosystem to drive financial inclusion and access to credit by catalysing innovation.
This sandbox experience contest, the first of its kind customised for the industry, will be held from January 12 to 15 and over 200 fintechs are set to participate. Each competing team has to pick one of the problem statements on which they will be able to do model development across a 72-hour period. The first prize is a cash award of Rs 6 lakh and second prize is Rs 4 lakh for the winning teams across each track.
“The power of credit information analytics has proven its efficacy by enabling the quick and smooth implementation of government relief schemes like the moratorium, emergency credit line guarantee scheme and by helping find and fund good borrowers,” TransUnion Cibil MD & CEO Rajesh Kumar said.
According to Kumar, the fintech lending industry is providing access to finance through approximately 13 million loans to the tune of Rs 23,000 crore, as of 2019.