DECEMBERASIA BUSINESS OUTLOOK9Amazon and Flipkart are accelerating their expansion into consumer lending in India, stepping up competition with traditional banks through a growing portfolio of digital credit products.After acquiring Axio, a Bengaluru-based non-banking financial company, in early 2023, Amazon is working on introducing various financial services to small businesses besides the already existing BNPL and personal loan products.Apart from business loans, the company will also offer cash management solutions. Amazon Pay, in collaboration with regulated financial institutions, has also ventured into the fixed deposit savings products market.Walmart-owned Flipkart is doubling down on the fintech transition as well. The company has formed a fully-owned lending subsidiary, Flipkart Finance, and is waiting for the approval from RBI for the launch of pay-later and consumer loan products.According to regulatory filings, the e-Commerce company plans to provide online shoppers with no-cost instalment plans and offer consumer durable loans with interest rates between 18% and 26% per annum.In addition to Amazon and Flipkart, few more platforms are leading UPI transactions in India. The licensing of Flipkart as India's first NBFC with an e-commerce platform for retail lending took place in late March this year while Amazon is yet to complete formalities for its small business credit project.With the technology giants stepping up to provide credit facilities, need for properly onboarded risk assessment, data analytics, and collections solutions compatible with India's Account Aggregator system is there which now covers more than 600 participants and 17 licensed aggregators. South Korea has unveiled a plan to spend 280 billion won (about US$191 million) over a period of four years to develop battery technologies of the next generation, such as batteries all-solid-state, lithium metal, and lithium-sulfur.The main objective of this program is to enhance the competitiveness of the South Korean secondary battery industry in the face of a severe global competition, especially from China.The government will also embark on the creation of a ten-year technological transition roadmap for the industry which will define the way to decrease dependency on Chinese materials and critical minerals. The roadmap will be centered on innovation, supply chain resilience, and the development of high-performance, next-generation battery solutions.In addition to the comprehensive tactics, the Republic of Korea intends to raise subsidies for electric vehicles (EVs), reduce some vehicle taxes and create demand for batteries in the sectors such as defense, robotics, and shipping.About 100 billion won (around US$68.2 million) will be set aside for a supply chain stabilization fund to help local supply chains together with increased low-interest loans for companies that invest in critical minerals. Moreover, the authorities plan to set up special industrial complexes for the battery-related sectors that will enhance the local ecosystem for battery manufacturing and innovation.This all-out effort is an indication of the South Korean resolve to keep the leadership position in the global market that is rapidly changing and to lower the risk of dependence on foreign supply chains, as well as to promote the sustainable growth of the next-generation energy storage technologies. AMAZON & FLIPKART EXPAND INTO CONSUMER LENDING IN INDIANEWSROOMSOUTH KOREA TO INVEST $191M IN NEXT-GEN BATTERY TECH· Amazon and Flipkart push deeper into consumer lending in India.· Flipkart awaits RBI approval; Amazon expands via Axio acquisition.· Stricter RBI rules expected as AA-based credit tools gain demand· South Korea to invest $191M in next-generation battery technologies.· Focus on all-solid-state, lithium metal, and lithium-sulfur batteries.· $68M allocated for supply chain stabilization and critical mineral support.
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