The Future of Lending Lies in Balancing Technology with Trust: Seeds Fincap MD on India's Evolving Credit Landscape

As India accelerates towards becoming a digitally empowered economy, Non-Banking Financial Companies (NBFCs) are playing an increasingly important role in expanding access to credit, particularly in underserved and rural markets. In this interview with IANS, Mr. Subhash Chandra Acharya, Managing Director and CEO of Seeds Fincap Private Limited, shares his perspective on the future of India's lending ecosystem, the rise of AI and climate finance, the importance of financial inclusion, and how Seeds Fincap is working to bridge the country's credit gap through a combination of technology, local engagement, and responsible lending.

1.What trends do you believe will define the next decade for India's NBFC sector?

The next decade for India’s NBFC sector will be shaped by four key trends:  technology, wider product offerings, smarter workforce talent, and theme-based financing.

At SEEDS, we believe technology creates the greatest value when it is combined with a human touch. Digital tools can improve speed and efficiency, but trust and customer understanding will continue to be critical, especially in financial inclusion.

We also see growing demand for more tailored financial solutions that meet the specific needs of different customer segments. At the same time, building agile and skilled will be essential as the sector evolves.

Another important trend will be climate finance. Financing clean energy, sustainable livelihoods, and climate-resilient smart agriculture solutions will not only create  social impact but also become an important growth opportunity for responsible lenders.

2. With increasing competition from fintech players, how can traditional NBFCs stay relevant and agile?

 Traditional NBFCs can stay relevant by embracing technology while preserving the strength of their local presence. Fintech have brought speed and convenience, but many customers still value personal relationship and local understanding. At SEEDS, we believe in a ‘tech plus touch’ approach. Technology helps us improve efficiency and customer experience, while our field presence helps us better understand customer needs and local market realities.

In my view, the institutions that successfully combine digital innovation with human connection will be best positioned for the future.

3.If you had to identify one major opportunity and one major challenge for India's lending ecosystem today, what would they be?

One of the biggest opportunities in India’s lending ecosystem is the huge untapped credit demand among individuals, micro-enterprises, and underserved communities.

As India’s economy continues to grow, the need for accessible and timely credit will increase significantly.

The biggest challenge is ensuring responsible lending in an increasingly digital environment. Lenders must use technology wisely, while maintaining strong risk management, data privacy and customer trust. At SEEDS, we believe sustainable growth comes from expanding credit access responsibly and keeping the customer at the centre of every decision.

4.India's credit landscape is changing rapidly. What do you believe will separate successful lenders from the rest over the next decade?

I believe successful lenders will be those that balance technology with trust. While technology can improve efficiency and reach, but customer still value relationship and reliability.

Lenders that understand customer needs and serve underserved markets responsibly will be best positioned for long term growth. At SEEDS, we see sustainable lending as a combination of innovation, trust and customer focus.

5.There is a growing conversation around financial inclusion, but are we truly reaching the last mile? What more needs to be done?

India has made meaningful progress in financial inclusion through initiatives like Jan Dhan, Aadhar and Mobile Connectivity. It has enabled the ground for financial empowerment now. We are certainly moving closer to the last mile. However, in a country as vast and diverse as ours, there is still significant ground to cover.

At SEEDS, we are consciously deepening our presence in Tier 2 and Tier 3 markets and strengthening our local connect by hiring talent from the communities we serve.

We believe, true financial empowerment requires localized financial solutions, customer trust and the right balance of technology and human engagement. The opportunity is immense, and so is the responsibility.

6.What advice would you give to aspiring entrepreneurs looking to build businesses in the financial services sector?

My advice to aspiring entrepreneurs is to remember that financial services are an enabler to realize the potential of individual. In long run you have to understand people and financial inclusion should not be limited to numbers. Products and portfolios matter, but trust, empathy, and integrity matter even more. Start with a vision, but remember that institutions are built through discipline, consistency, and resilience. Use technology to improve efficiency, but never lose the human touch.

Most importantly, create value for your customers. In financial services, trust is your most valuable asset, and long-term success comes from building it consistently. At SEEDS, we strongly believe that inclusion and profitability can go hand in hand when the intent is to create meaningful and lasting impact.

7.AI is increasingly becoming a part of financial services. How do you see emerging technologies shaping the future of lending?

 AI and emerging technologies are set to make lending faster, smarter, and more efficient. They improve credit assessment, risk management, fraud detection and customer services.

At SEEDS, we are already leveraging AI-enabled solutions in lead generation, customer support and collections to improve efficiency and responsiveness.

However, technology should complement, not replace, human judgment. We believe the future of lending lies in combining technology with trust and a strong human touch.

8.India is witnessing a rapid transformation in the financial ecosystem. How do you see the role of NBFCs evolving in bridging the country's credit gap?

As India’s economy grows, NBFCs will have an increasingly important role in bridging the country’s credit gap. A significant section of the population, still lacks adequate access to formal finance.

NBFCs have stronger local reach, and a deeper understanding of customer needs. This allows them to serve segments that are often overlooked by traditional lenders.

At SEEDS, we believe the future lies in combining technology with strong local engagement. NBFC that do this well will drive financial empowerment and support India’s economic growth.

9.What have been some of the key milestones in Seeds Fincap's journey so far?

SEEDS  has achieved several important milestones in a short period of time.

Our cumulative disbursements have grown from ₹71 crore in FY22 to over ₹1,600 crore in FY26, and our Assets Under Management has crossed ₹700 crore. We have expanded our branch network from 24 to over 160 branches, significantly expanding our footprint in Tier 2, Tier 3, and rural markets.

Today, we serve around 69,000 active clients through a team of nearly 1,900 employees.

We have also invested in technology and built moderate in-house capabilities across key functions, including Business Analytics and IT. For us, these milestones reflect not just growth, but our commitment to delivering responsible finance.

10.What sectors or customer segments are driving growth for the company today?

MSMEs continue to be the primary  growth drivers for SEEDS. We remain focused on supporting small enterprises that create livelihoods and contribute to local economic development. In addition, we are seeing growing opportunities in dairy financing, climate finance (particularly rooftop solar installation) and WASH infrastructure financing.  We are also exploring new opportunities in EV financing and cluster-based financing for non-agricultural livelihood sectors. At SEEDS, our focus is on providing responsible finance that supports both economic growth and social impact.

11.Seeds Fincap has been rapidly expanding its footprint across rural and semi-urban India. Which new states or regions are you targeting next, and how do you see this expansion helping small businesses that banks usually overlook?

At SEEDS, we see significant growth opportunities in East and South India.

However, our expansion is never driven by geography alone. We take a calibrated approach based on area surveys, on-ground assessments, state-level performance indicators, and market data to better understand local credit needs and business potential.

Our current focus is also on strengthening existing operations. We aim to develop all our branches into full-service hub branches, offering our complete range of loan products and serving customers more effectively.

Along with MSME financing, we are expanding into climate finance, WASH infrastructure and gender-focused lending.

SEEDS aims to provide timely finance that sustains lives and livelihoods.

12.Looking ahead over the next few years, what is your ultimate vision for Seeds Fincap’s role in bridging India's rural credit gap?

Our vision is to make responsible finance accessible to underserved communities across India. We want to support livelihoods, small businesses and local economic growth.

We will continue expanding our reach, strengthening customer relationships and using technology responsibly.

We aspire to be more than a lender. We want to be a trusted financial partner that bridges the  credit gap, sustains lives and livelihoods, and contributes meaningfully to inclusive and sustainable growth.