Ease of processes lure millennials to opt for digital lending
Digital Lending has seen a steady rise in India, catering to a population that is new to banking and new to credit, like millennials, Gen Z professionals, and the under-served. The reason why this group is extensively borrowing is because these individuals are denied loans due to lack of credit history or not being prime customers. The lack of easy credit by banks and NBFCs has led to the rise of digital lending. It has been found that Gen Z & millennials are not always borrowing for a valid reason. From going on dates, to heading over to some makeover, the list of reasons for borrowing is long & fatuous. People are duped by many of these loan APPs. Stricter government regulations in an age where dependence on digital media has escalated beyond doubts, will help such scams. As per a PWC report, the digital lending market in India will have a growth rate of 48% by 2023.
5 Key E-commerce security Trends for 2022
Online shopping has always been the hottest target for cybercriminals, and the phenomenal success seen by e-commerce enterprises in the aftermath of COVID-19 certainly has fueled the popularity. The new trends in technology, evolving customer buying behaviour, along with complex attack vectors will continue to disrupt cybersecurity in the e-commerce industry in the times to come. Some of the important security trends in the e-commerce sector in 2022: New Payment Innovations: New payment innovations like contactless banking are a part of the trend towards the new era of e-commerce businesses. A recent research report found that 56% of consumers globally say they’ve completed an online transaction on ecommerce apps using a type of payment that’s new to them. Adoption of AI for Fraud Detection -Advanced artificial intelligence and machine learning technologies are being developed by fintech companies such as MasterCard and Visa to predict and prevent financial fraud faced by e-commerce businesses and customers. Increased Reliability on Advanced Blockchain Systems – Blockchains quickly established themselves as highly decentralized and secure data flow technologies. E-skimming or Digital Skimming on the Rise. Increase in Credential Stuffing Attacks – Credential stuffing attacks — in which hackers use credentials exposed in prior breaches to attack new sites — are soaring, with 193 billion documented incidents globally in 2020.
Meta Platforms face 8 suits for ruining young lives
Meta Platforms Inc. is now a leader in another social media trend — lawsuits claiming the company built algorithms in its platforms that lure young people into destructive addiction. Eight lawsuits filed in courthouses across the US allege that excessive exposure to platforms including Facebook and Instagram has led to attempted or actual suicides, eating disorders and sleeplessness, among other issues. “These applications could have been designed to minimize potential harm, but instead, a decision was made to aggressively addict adolescents in the name of corporate profits,” attorney Andy Birchfield, a principal at Beasley Allen, the law firm that filed the suits. The complaints add to a spurt of recent cases against Meta and Snap Inc., including some filed by parents whose children took their own lives. The litigation follows a former Facebook employee’s high-profile testimony in Congress that the company refused to take responsibility for harming the mental health of its youngest users. Meta said in April that it’s improving the tools it provides for parents to keep track of what their children are doing on its platforms. The company also said that for teens in particular, it sends a “Take A Break” reminder that nudges them toward different topics if they’ve dwelled on one subject for a long time.
Metaverse platforms may give e-commerce a new spin
Gurugram-based startup NFTically, which specializes in offering non-fungible token (NFT) services, unveiled its own metaverse, called Comearth. The virtual space, designed as a replica of Earth, will allow brands to purchase parcels of virtual land and build virtual structures on that land. Toshendra Sharma, founder and chief executive of NFTically, envisions the platform as a new kind of e-commerce marketplace. He said that the platform will be open for brands all around the world, who can buy land at $200 (around Rs 15,500) for a single unit – around 9,700 square feet of virtual space. The launch of Comearth underlines increasing interest in metaverse platforms from a wide variety of brands, which Indian startups are now looking to cash in on. NFTically’s platform will become accessible from August this year, and Sharma said he plans to onboard more metaverse storefronts by then. At the moment, homegrown tyre manufacturing firm Ceat, multi-brand footwear retail chain Metro Brands, and textile conglomerate Mafatlal Industries have agreed to join Comearth. NFTically isn’t the only firm in India looking to give e-commerce a virtual spin though. Indian virtual reality and video game development company, Gamitronics, launched its own metaverse platform – Partynite – on January 26 this year. While the platform launched with a metaverse concert featuring Punjabi pop singer Daler Mehndi – who had also bought virtual land on the platform – it has since diversified to include brand stores in it.
Metaverse tokens outperform other crypto platforms with 395% growth
Crypto transactions on metaverse platforms are growing faster than the rest of the crypto industry, shows a June report by Kraken. Metaverse was also found to be the least volatile of all other crypto platforms. The report claims that the metaverse sector outperformed every other crypto platform with a 395% year-on-year (YoY) return. In comparison, return from exchanges grew by only 6% YoY, while last year’s return from BTC (Bitcoin) fell by 13%, ETH (Ethereum) fell by 25%, DeFi by 33% and Meme Coins fell by 62%. During this period, the various metaverse platforms including Decentraland (MANA) grew by 41%, Sandbox (SAND) grew by 470%, and Axie Infinity (AXS) grew by 511%. Though crypto tokens in the metaverse have grown, they have not been impervious to the recent downturn in the crypto industry, which wiped out close to $800 billion in market value in a month, as per CoinMarketCap.
96% edtech customers seek govt regulation: Survey
A majority of people who opted for online classes offered by edtech platforms have faced issues around infrastructure required for attending sessions, quality of teachers and refund of subscription fees, a survey report said. Online platform Localcircles in its survey found that 69 per cent of such customers have faced issues. The survey was conducted across 323 districts between April 1 and May 31, 2022 and received 27,000 responses. “Sixty-nine per cent of those who have taken online coaching/learning classes have faced issues. The question in the survey asked citizens about the kind of issues they or their family members have faced with online coaching/learning classes via edtech platforms. “In response, 9 percent of citizens said they have faced infrastructure issues, 19 per cent said they have issues with the ‘teaching staff effectiveness issues’, and 10 per cent had ‘refund issues’,” the survey report said. It said 17 per cent faced all three issues, 11 per cent respondents said that they or their family members faced both infrastructure and teaching staff effectiveness issues and 2 per cent faced infrastructure as well as refund issues, while 31 per cent respondent had no issue. Ninety-six percent of those who have taken coaching or learning classes want the government to make it mandatory for those selling coaching/learning packages or subscriptions to disclose cancellation and refunds policy to every customer and upload on their websites and apps, the report said.
Data centre capacity in India expected to double by 2025
Data centre capacity in India is expected to double to ~1,700-1,800 megawatt1 (MW) by fiscal 2025 from ~870 MW last fiscal, powered by the troika of data boom, digital adoption and local data storage mandates. This will require investments of over Rs 40,000 crore. The corporate embrace of advanced technologies and digital infrastructure, and the increasing use of smart devices by individuals have led to a massive spurt in data and cloud usage (wireless mobile data traffic grew ~31% to ~253 exabytes in 2021), creating huge demand for data centres. The launch of 5G services — likely by the end of fiscal 2023 — will further boost demand for data and storage capacities. Government norms on data localisation, seeking storage of sensitive data within the country, and digital initiatives would be another tailwind. Says Nitesh Jain, Director, CRISIL Ratings, “Indeed, data centres are emerging as an attractive infrastructure asset class in India. The industry is expected to add ~850-900 MW capacity during fiscals 2023-25. Mumbai, the financial capital of the country that accounts for around half of the existing capacity, is expected to add ~300 MW. This growth would be supported by proximal access to sub-sea cables, optic fibre connectivity, uninterrupted power supply and availability of skilled manpower. Hyderabad, Chennai and Pune will follow suit, and likely to add ~400 MW capacity cumulatively.”