#digital financing

Valu, Egypt’s leading universal financial technology platform, announced its financial results for the first quarter ended March 31, 2026, reporting strong growth across profitability, transaction volumes, and customer engagement. The company recorded gross revenues of EGP 1.52 billion during the quarter, marking a 40% year-over-year increase, while net income surged 78% to reach EGP 221 million.…

Valu, a leading integrated financial technology company in Egypt, has announced a strategic partnership with Dubi Phone, one of the country’s leading electronics retail companies, to launch a fully digital onboarding experience for Valu accounts. The partnership enables customers to purchase and pay directly through Valu within the Dubi Phone application, offering a seamless and integrated…

Erada Finance, a leading provider of financial services for micro, small, and medium enterprises (MSMEs), has announced a strategic partnership with Lumin Soft, a company licensed by the Financial Regulatory Authority (FRA) specializing in digital identity solutions, e-verification, and digital contracts. This collaboration represents a major milestone in Erada Finance’s ongoing digital…

In the dynamic realm of Non-Banking Financial Companies (NBFCs), the evolution of operational methodologies continually shapes the landscape of financial transactions. Amid this evolution, the integration of digital collection methods has emerged as a pivotal transformation. This paradigm shift in payment collection strategies within NBFC operations epitomizes a concerted effort to harmonize efficiency and convenience, revolutionizing the traditional approaches to managing financial transactions and customer interactions.

Understanding Digital Collection Methods

NBFCs play a crucial role in the financial ecosystem, extending credit to diverse segments of society. Historically, collection processes involved manual efforts, from door-to-door visits to physical cash handling. However, the digital revolution has introduced innovative methods that streamline this crucial aspect of operations.

Digital Payment Gateways

One of the most prominent digital collection methods adopted by NBFCs is through payment gateways. These gateways facilitate secure online transactions, allowing customers to make payments conveniently. With the integration of multiple payment options like credit/debit cards, net banking, and UPI, customers enjoy flexibility in settling their dues. 

In NBFC, particularly in Poonawalla Fincorp led by Abhay Bhutada, 98% customers pay via one-time online collection and remaining 2% by a different mode but still via digital channels.

Mobile Applications

In this smartphone era, NBFCs have capitalized on mobile applications to simplify payment collections. Through user-friendly interfaces, customers can easily navigate their outstanding balances, initiate payments, and set up recurring payment schedules, enhancing convenience while reducing the hassle of traditional methods.

Automated Clearing House (ACH)

ACH systems automate fund transfers, enabling NBFCs to collect payments electronically. This method offers a seamless way to collect recurring payments, making it particularly advantageous for installment-based loans or regular payments. It minimizes manual intervention, reducing errors and improving efficiency.

Also Read: Demystifying NBFC Success: A Blueprint For Profitability And Risk Mastery

Interactive Voice Response (IVR) Systems

IVR systems have emerged as a convenient tool for payment collection. Customers can call a designated number, follow automated prompts, and securely make payments through this system. It offers flexibility, allowing individuals to settle their dues at any time without the need for human interaction.

Biometric Authentication

To further enhance security and convenience, NBFCs are exploring biometric authentication methods for payment collections. Technologies like fingerprint scanning or facial recognition ensure a higher level of security in transactions, mitigating fraud risks while providing a frictionless payment experience.

Also Read: A Guide To Profitability And Risk Management From An NBFC Perspective

Conclusion

The United Nations is ready to serve as a platform for multi-stakeholder policy dialogue on the emerging technologies outlined above.

To facilitate such a dialogue, I intend to appoint an Envoy on Technology in 2021, whose role will be to advise the senior leadership of the United Nations on key trends in technology, so as to guide the strategic approach taken by the Organization on such issues. The Envoy will also serve as an advocate and focal point for digital cooperation – so that Member States, the technology industry, civil society and other stakeholders will have a first port of call for the broader United Nations system.

The Organization will map the technology and digital parts and functions throughout the United Nations system, so as to encourage a more coherent and strategic approach and assess where there is room for consolidation and strengthening. The strategy on new technologies, which was issued in 2018, is also being updated with a view to supporting different parts of the United Nations system in better harnessing digital technologies to fulfil their mandates. The upcoming report of the Task Force on the Digital Financing of the Sustainable Development Goals will provide further insight.

Digital technology has profound implications for the Organization’s work in other areas. For example, it can improve humanitarian action across the humanitarian programme cycle. Similarly, digital technologies can support United Nation peacekeeping efforts globally, including by ensuring the safety and security of peacekeepers.

U.N. Secretary-General