BofA to buy 49.9% stake in Indian digital lender Jio Credit

Bank of America is making a massive $1.9 billion bet on the digital lending space by acquiring a nearly 50% stake in Jio Credit. While this deal is happening in India, it signals a major shift in how the world’s largest traditional banks view consumer financing. Jio Credit is a digital-native lender that uses mobile-first technology to offer instant credit at the point of sale. For U.S.-based retailers and operators, this is a clear sign that traditional banking giants are no longer content letting fintech startups dominate the consumer credit landscape. This investment suggests that the technology powering instant consumer loans is becoming a global standard. When a bank as large as BofA puts billions into a digital-only lender, it means they are looking to integrate those seamless, app-based lending experiences into their broader business model. For your business, this likely means that the financing tools you offer customers will continue to get faster, more integrated, and backed by larger amounts of institutional capital. The line between 'fintech' and 'traditional banking' is officially disappearing. If you aren't currently offering a streamlined digital application process for your customers, you are falling behind the standard that the world's largest financial institutions are now funding.

Source: Finextra — Lending

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