- Could you share Digitap’s journey since inception and highlight key milestones in terms of clientele, product growth, and overall progress?
Digitap was founded in 2019, recognizing the need for reliable background and financial checks for companies and individuals before lending money. The emergence of Covid-19 highlighted the significance of such services as the global economy came to a halt, making lending risky for many banks and fintech companies.
That is when, Digitap rapidly gained traction in the BFSI industry by offering unparalleled technology services. It has established partnerships with over 90 leading fintechs and NBFCs in India, including prominent names like Bajaj Finserv, Motilal Oswal, Incred, KreditBee, NAVI, and more.
Being a bootstrapped startup, it has demonstrated remarkable resilience and built a robust technological infrastructure capable of handling over 10 million API hits per month. This technology prowess enabled Digitap to offer cutting-edge solutions to the BFSI sector, addressing their challenges in customer verification during the lockdown.
Digitap’s listing as a Technology Service Provider (TSP) on Sahamati, a self-organized industry alliance for the Account Aggregator (AA) ecosystem, further enhanced its credibility and reach. This allowed Digitap to facilitate seamless data sharing between financial institutions and customers, contributing to the growth of the fintech ecosystem.
While we are currently serving BFSI companies in India, we aim to expand our reach beyond national borders. Within the next five years, we aim to establish a strong global presence and become the leading company worldwide in providing cutting-edge technology services to financial institutions.
- What makes Digitap’s product stack unique and how does it cater to the specific needs of financial institutions?
Digitap’s product stack stands out due to its distinctive approach to underwriting solutions. What sets us apart is our focus on harnessing unique data sources that have a substantial impact on a customer’s credit profile. By identifying and utilizing these diverse data streams, we empower financial institutions to make more informed and precise lending decisions.
Our uniqueness lies not only in the identification of these data sources but also in our specialized scoring models. Digitap’s scoring models are tailor-made to cater to the specific needs of our clients, allowing them to build customized scoring models that align accurately with their customer segments. This customization ensures that financial institutions can evaluate creditworthiness more effectively and efficiently.
Our comprehensive data analysis includes a wide range of sources, such as telecom, social media, eCommerce, employment, and many others. By aggregating and analyzing data from these diverse channels, we paint a more holistic and detailed picture of a customer’s financial behavior and reliability.
- As a listed TSP in the Sahamati platform, what role does Digitap play in empowering financial institutions and enabling data sharing in the fintech ecosystem?
As a certified Technology Service Provider (TSP) listed on the Sahamati platform, Digitap plays a pivotal role in empowering financial institutions and facilitating data sharing in the fintech ecosystem. It acts as an intermediary, allowing customers to give consent to the secure transfer of their financial information between institutions.
Digitap specializes in implementing the Financial Information Users (FIU) module, offering end-to-end technical solutions for financial institutions. This enables institutions to focus solely on the necessary paperwork, while Digitap handles the technical aspects of data sharing.
Moreover, Digitap goes beyond providing basic data from Financial Information Providers (FIPs). It offers advanced analytics on the raw data, delivering valuable insights and actionable information to financial institutions.
Being a TSP, Digitap can connect with all Account Aggregators (AAs), ensuring seamless data sharing across various financial institutions. This facilitates access to comprehensive and up-to-date financial information about customers, leading to informed decisions and personalized services.
- How does Digitap utilize the Account Aggregator framework to streamline digital lending processes and enhance customer onboarding experiences for financial institutions?
Digitap leverages the AA framework to revolutionize digital lending processes and elevate customer onboarding experiences for financial institutions. As a certified TSP, Digitap empowers lenders by seamlessly integrating AA data into their lending workflows. Through this integration, lenders gain access to a comprehensive and real-time view of prospective borrowers’ financial information, facilitating informed credit decisions.
Going beyond basic data provisioning, Digitap adds value by offering advanced data analysis and insights, derived from its robust technological infrastructure. This enables lenders to assess creditworthiness accurately, understand risk profiles, and customize loan offers to meet individual borrower requirements.
- According to you, how will the data protection bill impact Fintech companies?
The upcoming Personal Data Protection Bill in India is set to have a significant impact on Fintech firms operating in the country. The bill aims to strengthen data protection measures, enhance user consent mechanisms, and establish stricter rules for data processing and storage. For Fintech companies, which often deal with sensitive customer financial data, compliance with the bill’s provisions will be crucial. They will need to implement robust data protection measures, obtain explicit consent from customers before accessing and using their data, and ensure secure storage and processing of information. The bill’s stringent regulations may also lead to increased compliance costs for Fintech firms, especially smaller players, which could potentially affect their operations. Additionally, the bill’s focus on data localization might require firms to invest in local data centers, further impacting their infrastructure and operational costs. While the bill aims to enhance user privacy and security, Fintech companies will need to adapt their practices and technologies to comply with the new regulations, ensuring responsible and transparent handling of customer data in the rapidly evolving fintech ecosystem.
- What are Digitap’s future plans and vision for the fintech industry
Our goal is to bring fresh and innovative ideas to the industry while expanding our services worldwide in a responsible and sustainable manner. We’re committed to making a significant impact and revolutionizing the finance and technology landscape.
One of our key priorities in the near future is to develop and deploy AI and ML models. These cutting-edge technologies will empower our clients to effectively cross-sell and upsell various products to their customers. By analyzing customer behavior and transaction history, our models will provide personalized recommendations and targeted marketing campaigns, fostering stronger customer engagement and loyalty. Additionally, we’ll leverage AI and ML in fraud detection and identity management to fortify security measures, safeguarding our clients’ businesses and their customers.
To achieve our growth targets, we’re actively working on expanding our global presence and engaging with a broader customer base. Building on our existing partnerships with over 120 financial institutions, we aim to surpass 250+ partnerships within the next two years.
Furthermore, we have set ambitious financial objectives, striving to achieve an Annual Recurring Revenue (ARR) of $20-25 million in the upcoming years. This achievement will be driven by a combination of acquiring new clients, diversifying our service offerings, and nurturing strong relationships with our existing clients. Together, we’ll drive Digitap forward into a successful and impactful future in the fintech industry.
