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Fintech Association for Consumer Empowerment (FACE) member companies disbursed loans worth Rs 29,875 crore during Q1 FY23-24, indicating a 32% annual increase and a 7% growth from the preceding quarter, as per a FACETS report.

Further, member companies disbursed loan volumes exceeding 2.2 crore, a 31% annual increase from the previous fiscal year and a 16% quarter-on-quarter rise. The average ticket size in Q1 FY 23-24 was Rs 11,043.

The report highlighted that growth rates varied considerably among member companies due to factors, including scale, segment focus, and access to capital. However, more than half of the members reported an increase in disbursement volumes.

It quoted data from nearly 36 FACE member companies lending to customers through their own NBFC and in partnership with other regulated entities (mostly NBFCs).

“As the industry marks the first anniversary of Digital Lending Guidelines (DLG), we all draw much satisfaction in the way the industry is contributing to meet the credit needs of vast unaddressed segments, adapting extremely well to all the aspects of regulations—be it disclosures, data privacy/consent, transactions, grievance redressal, or partnerships.” Sugandh Saxena, CEO at FACE, said.

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Introduced in September 2021, the Account Aggregator (AA) framework gained momentum in late 2022, as public-sector and large private-sector banks joined the framework.

Fintech NBFCs showed a rapid adoption of the AA framework in the current year, with 10 companies—responsible for 38% of total disbursement volumes in Q1 FY23-24—disbursed 3.6 lakhs loans using the AA framework, constituting 4% of their total disbursement volumes.

As a whole, about 2% of loans were disbursed using the AA framework, the report said, adding that it is an encouraging beginning considering that the AA ecosystem has progressed in recent months.

FACE serves as an industry association and non-profit organisation dedicated to fostering fair and responsible digital lending practices through self-regulation and customer-centricity comprising fintech lenders, regulated balance-sheet lenders, and platform/aggregator partners.

“As the fintech lending industry scales and innovates with a much larger, complex, and diverse supply side consisting of banks, NBFCs, and LSPs, our new upgraded Code of Conduct put the industry in good stead by unifying the market practices around customer centricity and value creation,” Saxena added.

An Elevation Capital and McKinsey report published last month said that the Indian fintech sector is projected to attain an annual revenue scale of $70 billion by FY30.

Notably, the report anticipates $400 billion in value creation within the fintech industry by 2030, representing a fourfold growth from the present levels.