How to make marketplace lending safe

RBI needs to handle fintechs with care, so that innovation, necessary for inclusion and cost-effective, fast transactions, is not stymied

Last week, Munich-headquartered Wirecard AG, one of the fastest growing fintech companies in Germany, filed for insolvency. Around €1.9 billion is missing and its auditor EY is convinced of “an elaborate and sophisticated fraud involving multiple parties around the world”. Wirecard had all along claimed that it had kept €1 billion with a Singapore Bank and EY, its auditor for a decade, believed it.

“In the absence of an agreement with the lenders, there was a likelihood of termination and expiry of loans with a volume of €800 million on June 30 and €500 million on July 1,” Wirecard announced while