THE IMPACT OF TECHNOLOGY ON NIM
The past few years have seen a monumental rise in technology and impacted the lives of individuals and businesses alike. In the BFSI sector, technology adoption has accelerated due to globalization and competition from fintech startups and alternative credit providers abhay bhutada poonawalla fincorp . By integrating technology into banking, banks can increase operational efficiency, provide better customer service, and cut operating costs. The focus should be on how technological advancements affect banks' and non-banking financial companies' net interest margins (NIMs) abhay bhutada . How does the Net Interest Margin work? NBFCs with solely lending activities are measured by their net interest margin (NIM), which is the difference between the interest they receive and the interest they pay their customers. If NBFCs only lend, their NIM is the difference between the interest they receive from loans and how much they spend on financing them. As a result of a higher NIM, a b...