Fintechs must build collection muscle to scale lending business: Cred founder Kunal Shah

Cred founder Kunal Shah said fintech startups focusing on small-ticket lending must invest in collection capabilities to ensure repayments from defaulters and build sustainable businesses.

Speaking at the Bharat Inclusion Summit hosted by IIMA Ventures, Shah said many companies had misdiagnosed the problem. “When it comes to mass-market lending, the issue is not demand but collections. If you’re offering loans to people below a certain income level, there’s unlimited potential to disburse. But the real challenge lies in getting the money…