Head of Risk at Cred Jumps Ship to Merging Fintech Firm Slice

SUMMARY

⏺ Kunal Kashyap, previously Head of Risk at Cred, has joined Slice, a fintech firm merging with North East Small Finance Bank to become a bank. Kashyap is expected to lead a significant part of the credit business in the new bank.

⏺ This move comes as both Cred and Slice are growing their credit businesses. Cred has its own lending arm, Newtap Finance, while Slice prepares for official banking operations and looks to strengthen its credit team to handle the merger with a troubled small finance bank.

Mumbai, April 3, 2024 – In a significant move within the Indian fintech space, Kunal Kashyap, the former Head of Risk at Cred, has departed to join rival firm Slice. This news comes as Slice prepares to become a full-fledged bank through its proposed merger with North East Small Finance Bank.

Leading Credit Business in the New Bank

According to credible sources, Kashyap will play a key role in shaping the credit business of the merged entity. "He is expected to lead a significant portion of the credit operations within the newly formed bank," revealed one source familiar with the development. The official launch of the bank awaits regulatory approval, with the National Company Law Tribunal (NCLT) currently reviewing the merger case. The Competition Commission of India (CCI) had already granted its approval in March 2024.

Cred's Growing Credit Focus

Kashyap's departure coincides with Cred's increasing emphasis on its in-house credit business. This focus on credit offerings reflects Cred's strategy to monetize its user base effectively. Cred established its own non-banking finance company, Newtap Finance, to spearhead this initiative. The appointment of veteran banker Sujay Das in October 2023 to lead risk for Cred's lending business further underscored this strategic direction.

Slice Gears Up for Banking Operations

Meanwhile, Slice is actively preparing for its official foray into banking. The company has already appointed seasoned banker Satish Kumar Kalra as the CEO of the banking entity to be formed post-merger. Industry experts believe Kashyap's experience will be instrumental in this transition. "Building a strong credit team is crucial for Slice, especially considering the need to stabilize the troubled small finance bank it's merging with," stated another source. Kashyap's expertise in technology-driven underwriting standards is expected to be a valuable asset for the new bank.

Slice's Financial Performance

For the financial year 2023 (FY23), Slice reported operating revenue of Rs 846 crore, although it also incurred a net loss of Rs 405 crore. Kashyap's appointment signifies Slice's commitment to building a robust credit infrastructure in anticipation of its banking operations. The industry awaits further developments as the merger progresses and Slice prepares to navigate the competitive Indian banking landscape.