Chit fund cos go tech-savvy with huge data at stake on getting legal status

Last week Lok Sabha passed the Chit Funds (Amendment) Bill, 2019, amending the Chit Funds Act, 1982

The recent passage of the Chit Funds (Amendment) Bill, 2019, has provided a firm footing to the sector and this is set to give a fillip to fintech companies surrounding the space.

This is likely to trigger a quest by several fintech firms to tap into the gold mine of data hidden in the sector, running into several crores.

Over the last couple of years, several fintech players are in the business of data analytics in the chit fund sector. 

They provide services like credit bureau checks, facilitating loans for chit fund subscribers and companies. 

Also, in recent years, with banks and non-banking financial