Chit fund cos go tech-savvy with huge data at stake on getting legal status
With the chit fund sector now on a firm legal pedestal with the recent passage of the Chit Funds (Amendment) Bill, 2019, the emerging fintech space surrounding chit finds is set to get a boost. At the heart of this growth is the quest for the gold mine of data hidden in sector, running into several million. Over the last couple of years, several fintech players are already in the business of data analytics in the chit fund sector, providing services like credit bureau checks and facilitating loans for chit fund subscribers and companies. Also, in the recent years, with banks and non-banking finance companies facing liquidity crunch, chit fund has become a booming business. According to T S Sivaramakrishnan, president, All India Chit Fund Association, and managing director of Balussery Benefit Chit Fund, the sector has been growing at about 10-15 per cent annually over the past few years. “ After demonetisation, we saw good growth in the value of chit funds. With banks, NBF