23 Aug 2016
If you have ever got your health insurance done, you are familiar with the drill. Before determining the premium, the insurer asks you to undergo a medical test to understand if you are healthy or not. Extend this analogy to financial institutions and the credit score becomes the medical test. Credit score is the financial behavior of your company over a specific period and would get built over a period… 23 Aug 2016
What you cannot track, you cannot measure and what you cannot measure you cannot control. This is an old saying which holds good for money also. In the simplest sense, accounting is all about tracking your expenses and revenues and following some basic standards to give a third person a clear picture of the financial health of the company. It provides clarity on the liquidity balance and helps the company… 23 Aug 2016
A business needs capital to fulfill the demands of growth and investment at various stages of a growth cycle. It is critical that the right source is used for different capital needs. All capital needs can be divided under three distinct verticals: 1. Short term need – from few days to few months 2. Medium term need – 1 year to 3 years 3. Long term need – > 3… 23 Aug 2016
Sitting in my office I often thought what value we provide to our customers, who again and again come back to us, many doing it for many decades. I often spoke to them in both formal and informal interaction, asking the same question. Bringing them back when our deposit rates were not the best, some hundred bps below the best available in the market our lending rates were high and… 23 Aug 2016
The shares of Lending Club have fallen 65% since beginning of year. The tapered growth, forced resignation of CEO at beginning of month and now subpoena by the regulators, things are not going as per the plan. Lending club is not alone in the P2P lenders space but others in the segment have shown similar stress. It is a high risk game, which need more/ better controls and risk assessment….